First off if you think you know what compounding is then you’d be doing it.
To know and not to do is really not to know.
― Stephen R. Covey
For myself the importance of compounding and investing hit me most when I started my teaching career in Thailand. The more classes I teach the more money I could make. Sounds great right or is it?
When you get older do you expect things to cost more, can you say inflation… Even ignoring inflation what if you want to make more money? That means more teaching. There are only 24 hours in a day. Okay I needed to work for money, but I knew I also needed my money working for me, otherwise I’d be running around teaching all day just to maintain my lifestyle given inflation as I got older. Worse, the higher paying courses are on nights and weekends, when would I see friends and family… Well, luckily I have been having my money work for me and taking advantage of compounding for several years now.
Below is a great video with an explantation on the importance of compounding and why if you knew what it is you’d start now.
Have you started using the power of compounding in your life? If not why not? Is compounding working against you? Share.