You most likely have some money saved up. Whether it is just for an emergency situation or something you’re saving up for, that money is just simply sitting there. Let’s say you have $1000 sitting under your bed, and you don’t plan on spending it anytime soon. If you leave it there and come back for it later, you will still have $1000 regardless. However, wouldn’t you like that $1000 sitting there, doing absolute nothing, to actually multiple? Think of the money itself paying you rent for using up your space; every time you return to check on it, you’ll make $1, $5, $20, even $100. Welcome to what people call compound interest or interest rate.
Sounds good doesn’t it? Your money would just keep growing and growing the longer you leave it there. In fact, the longer you leave it there, the bigger and faster you’ll see number increase. We’ll use your $1000 as an example. Let’s say you leave it there for a month, and next month you came to check on it; to find out that there is $10 extra dollars. As of right now, you have a total of $1010. So you say to yourself “Okay, I’ll leave the $1010 there for another month and see what happens.” and next month you check on it. This time, you find out that there isn’t an extra $10 dollars given, but $20 instead. How is this possible? Well remember how you were given $10 last month? That gave you a total of $1010 and because you didn’t take that $10 out or anything, you added your overall money growth.
What if you did take that $10 out? In that case, you would of been paid $10 this month, not $20. How can your money grow any more if you don’t allow it to increase in growth? It just can’t. Think of your money doubling in size every time you leave it untouched. If you take it out as it doubles, there’s no reason that it can’t increase on because it’s back to where it started. The longer you leave your money untouched, the faster and quicker it grows in sum. If you don’t plan on taking any of your money out to use for a while, get started today by looking into the stock market or opening up a saving’s account— let those cash rack up itself over time!
Have you ever wonder why people say ‘the rich keeps on getting richer’? It mainly has to do with them investing their money and leaving it there. So for instance, they invest in $1000 and each month, what ever compound interest they receive, that compound interest will double. For example, this month they will receive $10, next month will be $20, then $40, $80, $160 etc. As you can see, the longer they keep their money untouched, the bigger the growth becomes.
Investing your money in order to rack up compound interests has to be one of the easiest way to make money. It doesn’t require you to do anything at all. In fact, it is the other way around, the money works for you. However, how is it possible that your money can make money itself without you doing anything? It’s called interests. We’ll use the bank as an example.
Let’s say I deposit $500 into my savings account. What I’m essentially doing is allowing my bank to use that $500 I deposited. There is a cost for them to use my money, and that’s interest. Because I loaned them my money, I am therefore permitted to earn some kind of profit for my service. However, the only real service here was allowing them to use my money. It was really my money that did the work while I just left it there and forgot about it. Sounds great doesn’t it?
If you have money laying around, what’s better than to loan it to the bank or perhaps invest in the stock market. You don’t even need even need to lift a finger while the money does the work for you! Started today by just opening up a saving account or start researching on a company’s stock that you’re willing to place your money on and watch your money grow by itself!