Patience Compound Interest Money

CONSTANCY ๐Ÿ“ˆ create exponential wealth with compound interest

11 min

Today, let's cultivate the intention to invest our money (and all energy) wisely so that we can experience the magic of compounding interest—in all areas of life.

30 Days of Money
๐Ÿ’ธ YOU'RE INVITED!

Create Financial Freedom with the 30 Days of Money Journey.

Matt will guide you through each day with short actionable video sessions that include timeless financial wisdom, practical money-making exercises, and wealth-building habits. Each day's 15-minute session will help reveal blind spots, provide insights into your emotional relationship with money, and ultimately help bring more money into your bank account! ๐Ÿค‘๐Ÿ™Œ


Intention
๐Ÿ‘ INTENTION

Today, let's cultivate the intention to invest our money (and all energy) wisely so that we can experience the magic of compounding interest—in all areas of life.

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Listen to Matt read today's session on YouTube »

Inspiration
๐Ÿ’ก INSPIRATION

Warren Buffet, the Oracle of Omaha, once said, “My wealth has come from a combination of living in America, some lucky genes, and compound interest.” Did you know ~90% of Buffet's wealth has been acquired in the last ~10% of his investing career? This has less to do with making better financial decisions, and much more to do with the powerful snowball effect of compound interest.

Here's a graph that shows how saving just $500 per year turns into $250,000 over 30 years of compound interest in a standard 15% investment account.

And that's just what happens with a 15% increase per year—which is based on the actual average interest I've earned from my personal low-risk Wealthfront Investment Account (which I highly recommend) since I first opened it in 2016.

The principle of compound interest applies universally to our lives. It inspires us to hold the vision, have patience, and trust the process—not just with our financial gains, but in the growth of our well-being, relationships, spiritual development, and professional growth, and most especially for insert your intention.

Today's Key Actionable Takeaways:

  • ๐Ÿ™‹ Save at least 10% of everything you earn.
  • ๐Ÿ’ธ Slowly and consistently invest your savings.
  • โณ Hold the vision, trust the process.
Quote
๐Ÿ’ฌ QUOTE

Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it.

– Albert Einstein
Science
๐Ÿงฌ SCIENCE

Studies show the importance of starting to invest early and how compound interest really multiplies our wealth over the long term.

One study compared the total amount accumulated by two individuals who invested the same total amount but started at different ages. The first individual started investing at 25 and stopped at 35, investing for just 10 years. The second individual began investing at 35 and continued until 65, investing for 30 years.

Despite the second individual investing three times as much, the first individual accumulated more wealth by the age of 65. This surprising outcome was the result of the power of compound interest: the first individual’s investments had more time to grow, demonstrating that the length of time money is put to work can be more important than the amount invested.

This study inspires us to act now. Start saving and investing today, no matter how small the amount might be. Let your money work for you over time, and watch as the magic of compound interest enhances your wealth.

Mantra
๐Ÿ“ฟ MANTRA

Hold the vision.
Trust the process.

Journal
โœ๐Ÿผ JOURNAL PROMPT

How would your financial situation look different if you saved 10% of everything you earn?

Let's find out:

I earn about $ _______ / month

x 12 = $ ________ / year

x 10 = $ ________ / decade

x 0.1 = $ _________ the amount I would have if I saved 10% over the past decade.

And now just imagine if that saved money was making compound interest! ๐Ÿ’ฐ๐Ÿค‘๐Ÿ’ฐ

What small, consistent actions can you start taking today for long-term growth and success?

Healthy Habit
๐Ÿ HEALTHY HABIT

Adopt the practice of saving 10% of all your earnings.

The Richest Man in Babylon,” a classic book by George S. Clason, advises (along with many other financial advisors) that no matter how little or much you earn, always save at least 10% of your earnings. This principle, referred to as ‘paying yourself first', is one of the most fundamental steps towards building wealth.

The book emphasizes that by consistently saving a portion of your earnings and letting it accumulate over time, you set up a fund for future financial endeavors, are prepared to not stress over unexpected expenses, and open up many opportunities for growing wealth.

Over time, as you invest these savings, the power of compound interest comes into play, exponentially multiplying your wealth. This habit not only strengthens your financial health but also fosters a mindset of abundance, planning, and foresight. It's a testament to the adage, “Take care of the pennies, and the pounds will take care of themselves.”

Gratitude
๐Ÿ™ GRATITUDE

Where have you experienced massive growth over a long period of time thanks to small, consistent actions? Express gratitude for the growth and improvement these actions have facilitated.

Here are a few examples:

  • Health and Fitness ๐Ÿ’ช Small, consistent changes in diet and exercise can have a profound impact over time. A slight reduction in daily calories or a few extra minutes of exercise per day can lead to significant weight loss and improved health over the long term.
  • Learning and Skill Development ๐ŸŽธ Spending a little time each day on learning a new language or practicing a musical instrument, for example, can lead to substantial progress over time.
  • Relationships ๐Ÿ’ž Regular small acts of kindness, respect, and appreciation really start to create unwavering trust and develop irreplaceable intrinsic value.
  • Hobby Growth ๐Ÿค“ Consistent efforts to improve skills and gain knowledge can add up over time, leading to new opportunities for promotions, raises, or career changes.
  • Habit Formation ๐Ÿซก Building positive habits and breaking negative ones can be seen as a form of compound interest. Small positive changes can have outsized effects when maintained consistently over long periods.
  • Environmental Impact ๐ŸŒฑ Small changes in daily habits, like recycling or reducing energy consumption, can have significant long-term impacts on environmental health.

The critical factor in all these examples is consistency over time. Much like with compound interest, the benefits might seem insignificant or even nonexistent in the short term. But given enough time, their accumulated effects can be significant and transformative.

Meditation
๐Ÿง˜ MEDITATION

In today's short meditation, we will continue our journey into the forest of abundance as we connect with the energy of consistent growth and the power of compound interest.

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Watch on YouTube »

Affirmation
๐Ÿ“ฃ AFFIRMATION

I am consistently investing in my growth and reaping exponential benefits.

Intention Card
๐ŸŽด INTENTION CARD

download printable high-res files »

Community
๐Ÿ’ž COMMUNITY CONVERSATION

Every step we take today is an investment in our tomorrow. So may we plant the seed of savings today, nurture it with consistency, and watch as it grows into a mighty tree of wealth with the power of compound interest.

What did you discover about yourself during today's session?

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