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.
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.
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
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.
All of the dollars of profit generated by this employee each year (the return/earnings generated by your investment portfolio) also belongs to you.
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).
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.
Your investment portfolio is an amazing wealth creator.