Ever heard of compounding interest?
While reading a book on investing in real estate, I was reminded of a story I heard a while ago. I will keep mine shorter than the one I heard.
Would you take a job, if the person hiring you told you it was a temporary position, lasting only a month and the first day you would be paid 1 penny? The next day, 2 pennies, the third day, 4 pennies, fourth day, 8 pennies, fifth day, 16 pennies, etc...
Doubling a penny every day for 30 days does not sound like much! Even on the 15th day you are only up to $163.84! You are already half way there, you are beat after working half the month for $163.84. OK, I will save you the trouble of the math...
Day 1- .01
Day 2- .02
Day 3- .04
Day 4- .08
Day 5- .16
Day 6- .32
Day 7- .64
Day 8- 1.28
Day 9- 2.56
Day 10- 5.12
Day 11- 10.24
Day 12- 20.48
Day 13- 40.96
Day 14- 81.92
Day 15- 163.84
Day 16- 327.68
Day 17- 655.36
Day 18- 1,310.72
Day 19- 2,621.44
Day 20- 5,242.88
Day 21- 10,485.76 Now we are gettin' somewhere!
Day 22- 20,971.52
Day 23- 41,943.04
Day 24- 83,886.08
Day 25- 167,772.16
Day 26- 335,544.32
Day 27- 671,088.64
Day 28- 1,342,177.28
Day 29- 2,684,354.56
Day 30- 5,368,709.12
For a total of $10,737,418.23 for the month!
I know, you are wishing you could double your money everyday now! Just think what you could do if you could just double it every 7 to 10 years, which is very possible. Sleep well!