The Myth Of Compounding
All my life, I struggled with money. That’s because nobody taught me how to. I saved for the most part. But I remember, there was time in my life that I wasn’t good at money, saving wise.
I will spend badly, but I would not consider so bad that I’m in debt. What I realize is that I don’t save a lot either.
I don’t consider myself a terrible spender, but I don’t have a lot of savings too to live comfortably. This is the reason then that I wanted to earn more moeny from different revenue stream.
I own stocks, but I don’t consider it a huge sum of money that I can own a beach house in Florida. I tried other revenue streams but nothing works like magic.
Then after I lost my job, my mind shifted slowly to wanting being wealthy. I don’t want to work for anybody anymore. I dabbled with Amazon selling. I must admit I lost money there. But here’s one of the part that made me proud of myself, my conviction of going to be rich and wealthy.
If you keep on looking for what you want, you will find it. It may not be the easiest path, but I you will find ways if you continue to work.
After Amazon and having passive investment in stocks, I came across a book about wealth building. One of the most profound effect on me was the “myth of compounding”. The truth is yeah, overtime, your money, if you leave it in an investment will grow because of compounding, but think about it, the process will take long.
My Mentor’s advice (actually, it’s a book I been reading and the author I been following), is to go on business if you want to get rich fast.
Why own a business? Because you can turn a profit. That’s the premise.
In stocks, if you gain 4 to 5 percent per year, if you don’t have a huge investment, then those earnings will not support you.
However, if you have a business, you put in 1 dollar in advertising, and gets 2 dollar in the end, you have a million dollar business. Why? Because your profit purely depends on your advertising budget.
Put money of $10 in advertising, your profit is $10. $100, your profit is $100. You get the point? So invest small, know your metrics and then put back your profits back to advertising.
Remember, this is not a quick rich scheme. This advice is building wealth practically in less than 7 years.
This really works with selling information online. Because with information, your investment is already paid upfront.
So here I am, selling information. I’m not there yet but everyday, I always work to serve the people who need my information.
