How to Make Your Money Grow Faster than Weeds

None other than Albert Einstein called compound interest the most powerful force in the universe. You can't argue with the smartest man in the universe. Can it get any better than your money earning more money while you sleep? I'll tell you what could be better: the money you earn on your money earning money too! That's the amazing power of compound interest.

Compound interest is the proverbial snowball rolling down the mountain. Don't be fooled by its small initial size. It turns into an avalanche quickly. And the bigger it grows, the faster it grows too.

Let me ask you this: Given the choice of a 100 dollar per hour job or one month where you start with a penny and it doubles every day until the end of the month, which would you choose? Most people choose the $100 per hour job without giving it a second thought. A normal workday would produce $800. That's $4,000 during a regular 5 day work week. That would be 16,000 bucks during a typical month. That's a lot of dough, clearly better than doubling a measly penny for a month. Or is it?

Here's the simple math (see the table at http://www.Top10MoneySecrets.com). Beginning with one cent and doubling it daily for one week, you'll have $1.27. Continue doubling your accumulated earning every day for one more week. Your cumulative total at the end of week 2 is $163.83. At the end of the third week, you've accumulated some serious cash - $20,971.51. And it keeps getting better. At the end of the fourth week, you will have amassed a fortune of nearly 2.7 million dollars. Most months are 30 days though so let's let it ride for two more days. Ultimately, you have over $10.7 million in only one month and you started with one small penny.

That $100 per hour job doesn't look so great anymore does it? Heck if you were making $1,000 an hour, you'd still only make $160,000 for the month. And that's working full time, 40 hours per week. And you didn't even have to work to amass your $l0.7 million fortune. You may not have been working but your money was working for you.

There are several lessons here:

1. Allowing your money to work for you beats the pants off you working for your money.

2. Start early and watch your investment grow. The sooner you start the better. The vast majority of the $10.7 million was earned in the last week as compound interest snowball gained momentum. Think of each dollar as a seed. If you want abundant crops in the fall, do you plant your seeds in the spring or do you wait until the fall? Don't be one of the people who don't think about or plan for retirement until it's too late.

3. Don't spend your retirement earnings...period. Don't give in to short-term impulse urges to buy things your don't really need. Let compound interest work its magic! For example, if you had withdrawn $10,000 on day 21 to buy a new toy, your total at the end of 30 days would drop to $507,418.23. Half a million dollars is nothing to sneeze at, but that new toy didn't cost you $10,000. Considering what you'd have earned had you let the interest compound, it ended up taking $10.2 million out of your account. Proving once again that patience is a virtue.

To be honest, this is an exaggerated example. You're not likely to find an investment opportunity that returns 100% daily for 30 days. But don't lose sight of the practical lessons this example provides. Wealthy people clearly understand these lessons, poor people clearly do not. So do you prefer to follow the example of the wealthy or not?

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