Power Of Compound Interest

“Compound Interest is the 8th wonder of the world. He who understands it, earns it; he who doesn’t, pays it.”

                                                                                                                           -Albert Einstein  

                                  Inflation

Most of the new investors who come into the world of investing without prior knowledge won't know the main terms like Inflation, Compounding, etc. So they may lose or short term profit which leads them to big losses. Inflation is the process of losing the value of money. Through inflation, our money loses value by year. So investing is one of the best ways to beat inflation because investing gives more results than the inflation change yearly no let's talk about the facts.

                                How Inflation affects the result

As of today the average inflation rate is from @4% to@6%  let's see the below table to understand the impact of inflation more.

Table:1.1

Source: Investica

You can see clearly the effect of Inflation in the given table how it affects your financial goals. So when you plan something regarding finance remember to take inflation in charge.

How Compounding Affects the Inflation

Compounding is the opposite of inflation so to be safe from inflation you need to know the power of Inflation. Compounding gives a small result at first but when you become consistent the result increases with the rate you couldn't imagine. For example, WarrenBuffet made 90%of his net worth after his 64th birthday. He knew the power of compounding so he was consistent and he was successful to generate that much of the money.

How you can compound your Wealth

Now it comes to compound your wealth first you need to make an income source and make an asset from the income source and from the Result of the asset you can make another asset and repeat the process.

Are you Ready to compound your wealth?

Thank you!!!