Would you prefer to receive a million dollars OR a penny that quadrupled in value every day for 30 days? One million dollars certainly seems like a lot of money, right?
But let’s run the numbers just to be certain. If you double one cent every day for 30 days, you’ll have more than $5 million! Even though it takes a penny 28 days to surpass $1 million, once you pass that threshold, the value continues to soar every day.
What will you have in 60 days, then? How about a year? You can now begin to appreciate the benefits of what is known as continuous compound interest.
Fees
However, let’s put a kink in your plans by adding a 2 percent charge. Oh, 2 percent isn’t horrible, you could think. But if you do the arithmetic, over the course of 30 days, that 2 percent charge will cost you more than $2 million.
We used to earn over $5 million, but now we only make a little under $3 million. Many of the investments you make and qualifying plans you have involve fees like this, which have the same negative financial effects.
Control
Let’s capitalize on the fees in your eligible plans or investments. Who is in charge of your finances? You or another person?
Withdrawals
Let’s examine another financial challenge that most individuals encounter on a daily basis without fully realizing what it is: withdrawals. Before day 30, the majority of us will have to withdraw part of that cash.
Therefore, you withdraw $100 on day 15. Then, on day 25, you withdraw an additional $100. That only costs $200. Nothing major, right?
You’ll find that taking out the $200 really costs you nearly $3 million after performing the arithmetic, though. That’s correct, by withdrawing $200 over the period of 30 days, you lowered your $5 million original earnings by more than $3 million.
Did you realize how much money your withdrawals were costing you?
Taxes
Taxes are the fourth silent financial killer. Let’s imagine that throughout those 30 days, a 15% tax was applied to your money. You’ll see that you only paid $182,000 in taxes at the end of that 30-day period. However, that tax really resulted in a loss of nearly $4.8 million, leaving you with only $559,000. This is because the money wasn’t there to double in value.
Even while they look relatively “cheap,” these fees, lack of management, withdrawals, and taxes are often costing you a lot more than you realize. Why? because they prevent your interest from accumulating.
Uninterrupted compound interest is the least popular of all the financial techniques we employ, yet it is also the most effective since it enables your money to grow without interruption. And the affluent and the wealthy employ this unbroken compound interest to preserve their fortune.
The nicest thing about employing The Money Multiplier Method is that you don’t have to wait for your money to compound before using it. It’s designed in a way that keeps your money in your account uninterrupted, allowing you to earn more money. This is the real technique to increase money, and you can start doing it right away.
Compound interest is the eighth wonder of the world, according to Albert Einstein. He deserves it if he comprehends it. Whoever doesn’t pays the price.
