In this blog you have read a lot about the magic of compounding and how it can help you reach your long term goals.
I have also written multiple times on the benefits of Systematically getting money deducted from your account to directly go for your investments so that you don’t have to think about it. Tbe moment you bring the thinking into the process, chances are things won’t happen.
The last item that I have not written so much about is what do you do if you have already crossed the age of 40. Since compounding works over a very long period of time, what do you need to do to get financial freedom.
I had couple of times written about the Hemchander-Fibonacci number. If you use that logic to systematically invest the sum of the previous two numbers on a consistent basis, then you can beat the challenge of not having enough time on your side to make compounding work.
While not as aggressive as the Hemchander-Fibonacci equation, even if you were to increase your investments by 4% points every month or 10% every quarter, you could have a 46% higher core this year entering the compounding equation. If every year you keep doing this, you will have compounding work on compounding to give you an exponential growth.
Even very small increments done o er a long period consistently can help you achieve financial freedom. So don’t get bothered at what age you start investing, the key is to see how you can keep growing the core on a consistent basis.
Till next time then.