Money Club for Young Adults
How to Use Money -
Unleashing The Power of Compounding & Time
Keep saving every year. As your income increases, the amount you are able to save will also increase. Do not spend the earnings/return that you are generating on your savings. Let compounding and time work their magic.
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​What is compounding?
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"Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn't, pays it." Albert Einstein
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Income streams are the key to building wealth.
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Every year you will be creating new income streams. Over time, your streams will steadily grow in size and become rivers.
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In the beginning, your savings will be the primary driver of the growth of your wealth. But driven by compounding, over time the income stream from the earnings/return that you are generating on your savings will explode in size - and it will become the primary driver of the growth of your wealth.
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Wealth is not the size of your bank account. It is the size of your income streams. ​
Your investment portfolio is like
owning your own company
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Every dollar you save becomes your lifetime employee. This employee is a very hard worker. They also work 24/7. They take no sick days. They are completely loyal to you.
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All of the dollars of profit generated by this employee each year (the return/earnings generated by your investment portfolio) also belongs to you.
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You have two engines driving the performance of your company:
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The amount you save each year.
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The return/earnings being generated by your investments each year (the fruits of the labours of your employees).
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In the early years, your savings is the key driver of the performance of your company. However, over time, investment returns become the key driver.
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Your investment portfolio is an amazing wealth creator.