The eighth Wonder – Compounding

Compounding

Compounding is the process by which earning generated from one investment are reinvested to generate even further revenue over time. This results in an exponential growth in one’s earnings because of the creation of a new source of revenue as both the principal assets and the earnings generated from the principal assets are used.

Power of compounding

Investing

only in the principal amount results in a linear growth while compounding results in exponential growth. This converts your working money into an income generating tool. If done at the right time, compounding provides early starters with a financial push in their lives. It also creates a sense of financial discipline in the investor. It makes them realize what their priority is.

Additionally , It also helps them understand how compounding today would help them in the future.

Compounding is a very powerful force and one must strive to use it to its full potential to maximize the advantages. It is a great tool for those who have a vision for their financial future.

Also, It is the process by which earning generated from one investment are reinvested to generate even further revenue over time. This results in an exponential growth in one’s earnings because of the creation of a new source of revenue as both the principal assets and the earnings generated from the principal assets are used. Power of compounding Investing only in the principal amount results in a linear growth while compounding results in exponential growth.

Furthermore,

This converts your working money into an income generating tool. If done at the right time, compounding provides early starters with a financial push in their lives. It also creates a sense of financial discipline in the investor. It makes them realize what their priority is and helps them understand how compounding today would help them in the future.

Compounding

is a very powerful force and one must strive to use it to its full potential to maximize the advantages. It is a great tool for those who have a vision for their financial future.

Now , you know the benefits of compounding. Dont forget to learn more about it in the Star trader classroom course.

Good News! Arranging the first class at no cost before 20 June, Make sure you sign up for that.

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