Friday, September 20, 2024

The magic of compounding

Invest, earn income from it, add the income back to capital, now earn more income, add that income again back to capital. Rinse and repeat. Your capital grows at accelerating rate, along with the income it generates, even if returns is a fixed % of capital.

Make every dollar work hard for you tirelessly while you enjoy life. They are your little minions...



The hardworking minions generates some more dollar/minions, which are immediately added to the "workforce" to start working for you, so you have more and more minions working for you over time.

This is how rich people get richer and richer, not without effort, but with less and less effort as the workforce grows. You'll never run out.


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