| Now I know that many people remember hearing | | | | see how much something like this will really grow! |
| exponential growth in their high school math class but | | | | Believe it or not a key to becoming successful in this |
| fear not, I'm not going to get into any confusing math | | | | process is psychological more than anything else. |
| and to be completely honest I don't need to for you all | | | | When I say psychological I'm talking about getting into a |
| to understand this amazing principle. | | | | habit of depositing a portion of your paycheck into this |
| Firstly exponential growth simply describes anything | | | | account or whatever it may be. The ways of |
| that is growing at a certain percentage, for example a | | | | technology have made this increasingly easier with |
| bank account that grows at 5% annually (per year). | | | | programs like direct deposit which will immediately take |
| Exponential grow fundamentally describes how much | | | | a portion lets say %10 of your paycheck and deposit it |
| that percentage can grow to INCREDIBLE AMOUNTS | | | | into this account. Imagine if you set this up and |
| over a given time period. First it's a good idea to | | | | essentially forgot about it. You would have a huge |
| calculate the doubling time of a given amount of | | | | amount of money growing without even thinking about |
| money, essentially how long it takes to double in | | | | it! There's no risky stock/market speculation, there's no |
| amount. All you have to do is take 70, and divide it by | | | | tricky and complicated understanding of investment |
| whatever the percentage of growth is. SO, the time it | | | | either! This simple method of exponential growth can |
| takes is equal to 70 divided by 5%. T= 70/5 From this | | | | take you a lot father than even a 401(k) in many |
| we find that it will take 14 years for the amount you | | | | situations. With this understanding, in 30 years anyone |
| have original to double. | | | | can become the owner of hundreds of thousands of |
| Once we easily figure that out we now can see how | | | | dollars, even if they work a job at minimum wage! This |
| exponential grows works. If we deposited $100 in an | | | | is why the concept of exponential growth is so |
| bank account that yields %5 annually we can see that | | | | important. You can completely change your future just |
| in 14 years it will be $200. 14 years from that it's $400, | | | | by setting up a bank account and direct deposit. |
| $800, %1,600, $3,200, $6,400, $12,800 ETC. | | | | Many people once they get introduced to this subject |
| This may seem like a long period of time to wait but | | | | look for other ways to increase the annual % that |
| you have to understand that all you did was put $100 | | | | they are getting for their deposited amount of money. |
| in the bank THAT'S IT. Imagine if you put a small | | | | This is where understanding of different avenues of |
| portion of your paycheck into that bank acct or | | | | investment such as bonds, mutual funds, and precious |
| possibly another means of growth such as bongs or | | | | metals come into play, and believe me once you start |
| maybe gold or silver. At that point we're talking a lot | | | | learning about this it becomes addictive. |
| more than $100 and with that in mind you can begin to | | | | |