Are You Compounding Your Money?

The best part about understanding investing is that when it is done correctly your money has the ability to COMPOUND.

When we work, we exchange time for money. Even if we are handsomely remunerated for our time we still have to go to work to earn something. We will always exchange 1 unit of time for a corresponding amount of money in a LINEAR fashion when working in this way.

This would be all well and good, however, true freedom would be the option to not work at all i.e. financial freedom.

COMPOUNDING means that our money grows exponentially and not linearly. It occurs when our money works for us (not the other way around).

This is something only accessible to us via investing. This results from the historical fact that when it comes to the markets the ADVANCE IS PERMANENT and any DECLINES ARE TEMPORARY.

This only applies to certain assets and not others of course - one must have the correct understanding and knowledge to take advantage of this principal.

The good news is that this can be done with a relatively small amount of education.

On this basis, you can think of investing merely as a better place to STORE our wealth long term.

The beauty is that when one understands how to invest their own money they can attain greater rates of compounding than most professionals. The reason for this is that fees that they would normally pay to attain this service are theirs to keep and reinvest. This accelerates your journey to freedom.

The markets can also be perceived as a "compounding machine." A machine freely available for any one of us to use.

This is the one of the most amazing ways to build scalable income beyond what we can imagine. ????