The Power of Compounding

[Inem]

The concept of compounding is not for someone who is extravagant in nature. It takes a frugal and diligent person to compound successfully.

 

[Salt]

There are saving schemes that works like that and they will pay us interest after compounding and I am planning to learn more about it and invest it on the name of my mother

 

[Heatman]

It doesn't make sense for anybody to just save their money in a bank account when you don't have any guarantees or opportunity of improving the money and getting any increase of interest on the money. This is why you have to pull such money and invested in a project that is going to pay you a percentage of interest over a period of time.

 

[Debashis]

It is undoubtedly a powerful method in order to increase your wealth but it will work only for long term investments for a common man who is not a professional day trader. It will need years and years of hard earned money to be invested and finally turned it into a huge amount when you are 60 or so. Now a days it is hard for people to survive for 60 years due to the type of food we are taking in and the increase in pollution. So whatever wealth you make through this method will be beneficial for your children, not for you. It's a harsh truth.

 

[Heatman]

It is true that compound interest is one of the best ways to grow economically and organically, the only thing we must find is a reliable investment where we can make the compound interest or do it in different investments to diversify and minimize risk.

That's very correct! If you don't make sure that you are dealing with a reliable investment, you will only see yourself in a big loss because instead of getting any interest, they scammers behind the investment you put your money into will cook up stories and disappear with your money.

 

[Riberet19]

That's very correct! If you don't make sure that you are dealing with a reliable investment, you will only see yourself in a big loss because instead of getting any interest, they scammers behind the investment you put your money into will cook up stories and disappear with your money.

You're right, because if you invest in the long term making compound interest in an asset that is a scam, the only thing you will have is losses as you say, a good option here and that many conservative people choose, is to do DCA or invest long-term in American indexes such as the SP500, Nasdaq100 or even the Russell2000, since these indexes have behaved well historically and leave calculable returns and in the long term.

 

[Heatman]

You're right, because if you invest in the long term making compound interest in an asset that is a scam, the only thing you will have is losses as you say, a good option here and that many conservative people choose, is to do DCA or invest long-term in American indexes such as the SP500, Nasdaq100 or even the Russell2000, since these indexes have behaved well historically and leave calculable returns and in the long term.

The problem with some people who are investors is that they are too lazy to look into the project or companies they are investing their money into simply because of how good the interests they are getting paid as their returns in the investment. They will keep compounding it for a while until they want cash out, it will become a problem. They will lose their investment and the so called compound interest.

 

[glitch]

This is how a lot of people retire young these days. It isn't because of good salaries, it is because of good investing and financial planning. You have to start small and learn as you go though.

 

[Heatman]

This is how a lot of people retire young these days. It isn't because of good salaries, it is because of good investing and financial planning. You have to start small and learn as you go though.

This is a fact. It's almost impossible for someone to depend on his or her salary payment to retire young and be very comfortable. The only thing that your salary does is helps you to get by through the month and you start all over again. Without investment in this way, you are going to struggle for a long time.

 

[Good-Person]

This is how a lot of people retire young these days. It isn't because of good salaries, it is because of good investing and financial planning. You have to start small and learn as you go though.

Exactly! Majority of the people have made profitable investments. There are only a very few people who rely on salaries. This is because they do not earn a huge sum of money in the first place. They have to make investments in order to become successful. I do not earn interest, but I prefer to invest in valuable commodities.