This Will Make You Come… To Understand Compound Interest-Life Hack

What in the Hell is Compound interest and why is it important to your life?  You may be asking your self, “Matt, what’s up with these sexy animals you keep posting pictures of and writing words about?”

Here is what’s up with that.  I discovered the secret to life and to many people an Article titled “Compound Interest- The secret to life,”  would garner some attention, but I want everyone in the world to understand this.

Compound Interest is not a difficult concept to understand, and it is not only for wealth accrument.

Compound Interest is the answer to every single problem you have in your life right now and the solution to the most exciting joy-filled existence you ever thought possible.  

Interested?  Good- because those O’Faced celebrities understand compound interest just about as well as the millionaire broker or investor on Wall Street.

Now I present to you how it works, but first the literal definition of Compound Interest.

Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest. It is the result of reinvesting interest, rather than paying it out, so that interest in the next period is then earned on the principal sum plus previously accumulated interest. Compound interest is standard in finance and economics.-Source Wikipedia

God is that confusing or what?  Here is what it means- Interest that builds on itself. It is an accumulation of investment. 

Still confused ok, no problem we need examples.  Compound interest is found in every facet of life but is only really recognized in economics.

Example:

John is a 300-pound man that eats bad and doesn’t exercise.  One day John says, “I am going to lose 100 pounds and change my life.”

So, John begins an exercise and diet program, one that he invests 30 mins in every day.  The first couple of weeks yield no results he is tired, sore and hungrier than ever.

John thinks, “This is hopeless, I will never lose weight I am destined to be unhappy and out of shape.”  What John does not realize like the majority of the human race is that his investment in his physical health takes time to build.

The secret here is realizing that he is investing in a worthwhile endeavor that is proven to pay huge dividends.  The issue with most people is that they do not see immediate results and cut their losses too soon.

They are not giving the Compound interest the time it needs to work.  Because we all know what would happen if John sticks to a healthy diet and regular exercise, it is proven science that he will lose weight.  It is Guaranteed.

This is true in every single aspect of our lives. I am reading Tony Robbins book “Money: Master the Game.  In the first Chapter, he points out that “Oh, if you made it this far you are in the Minority, 90% of people stop reading Non-fiction books before finishing the first chapter.”  

How about that for pulling out of the Market to soon.  But I am guilty of it in a lot of respects and it has led to a lot of unhappiness in my life.

Compound Interest is a simple principle of investing in something that has a steady payoff and continuing to invest over time the numbers grow exponentially larger and faster than we could ever imagine.

Is this boring to you? I find it extremely fascinating that all we need to do to unlock this massive Life Hack is 3 things.

1. Identify your investment- i.e finances, health, knowledge, macaroons… Whatever
2. Pick a worthy investment model- i.e find out what worked for others
3. Take action in the direction you choose and never look back- i.e if you want to take the Island, Burn the fucking Boats.

Do not ever stop pouring into the things that you love, because they will eventually pay off and you will be able to live off all that wonderful interest you accrued and damn life is easy right.

Just make the right choice and keep making it, Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over and Over.  Win

Thanks for reading, Now Tell me do you understand Compound interest a little better?

What are you investing in?  Share with me and maybe I will give you an O Face