The Power of Compounding
Most people don't believe it; they think there's some sort of magic or that you would have to win the lottery to have that kind of capital, but it's simply not true. When you do understand this, the knowledge can change your life. Case in point: A good friend of mine back from my undergraduate years of college paid for her entire education through a trust fund set up by her grandfather. The unique thing? Her grandfather was a young man just out of the military with only a few thousand dollars to invest. Yet, he understood that he could change the course of his family's history by looking beyond his own lifetime. Today, each of the grandchildren have several hundred thousand dollars in an account.
You can grow that rich if you start young, compound long enough, earn a decent rate of return, and continue to put aside ever-increasing amounts of cash for investment. Einstein was correct; the power of compounding really is the eighth wonder of the world.


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