Do you want to know how you can be a wealthy person then you are in the right place as in here i am going to tell how you can use the power of compounding to became a wealthy person.
You may have heard about the story of a monk from whom the king got impressed and asked to ask him to what ever he want and he will give him that.
The monk replied him i want nothing from you just one thing cheese board has sixty four block just put 1 rice on and first day and keep doubling it till the the sixty fourth block.
The king started laughing on him thats the only thing you asked you should have ask for gold or land i would have give but the monk replied thats the only thing i want which i asked you for.
As he asked for the king replied to his soldier to give to do it what he want the solidier put 1 piece of rice second day 2 piece on second and carry on doing on the thirty foruth he went to the king the running we dont have the enough wealth to put rice on 36th block.
And told the king that the monk was very clever he asked the king to give him his kingdom.
This is a power of compounding you may don’t think that what can happen in future.
you should have invest in stocks or index funds as the give 12 to 15 percent of compound interest and in fd which give only 7 percent of simple interest as in compound interest it will also give you money also in the compounded money.
Not like simple interest which will only give you the money which invested on it not it doesnt give interest on the money you gain from it.
You should have have patients while investing in stocks or index fund as it may take years but you could became millionaire like that monk.
I will talk more about stoccks and bonds in other article as you should not invest in it before learn enough about this topic like when you give exam you prepare for it by learing it.
Thanks for Reading 🙂