What is Compounding? In my last blog, I mentioned the term Compounding, realising I needed to explain what it is. The best way for me to do that, would be to ask you a question. If I was to offer you a Penny doubled for 30 days or a Guaranteed Million pounds, which would you choose? Most people I have asked that question too, opt for the guaranteed millions pounds because they believe it is the safer option. Let me show you the calculations of choosing the other option, which will demonstrate to you how compounding works, as opposed to me describing it. Day 1 – 1p+1p = 2p Day 2 – 2p+2p = 4p Day 3 – 3p+3p = 6p Day 4 – 4p+4p = 8p Day 5 – 8p+8p = 16p Day 6 – 16p+16p = 32p Day 7 – 32p+32p = 64p Day 8 – 64p+64p = £1.28 Day 9 - £1.28+£1.28 = £2.56 Day 10 – I think you have the gist of how compounding works. Why not continue the calculations for up to 30 days. And let me know if you changed your mind from having a guaranteed million pounds to having a penny a day doubled. If you are interested in joining me in a penny a day strategy, which I have recently been introduced too, drop me an email. To earn whilst sleeping, is really a very good feeling. *There have been some changes with the company I am working with. So, let me know if you are interested and I will keep you informed when the company is back up and running! |