If you had the opportunity to travel back through time to invest in companies like Apple, Coca-Cola, or McDonald’s when they first started or first IPOed knowing what you know now, chances are you’d go all in or beat yourself for not doing it.
Unfortunately, we cannot traverse through time and none of us possess magic balls that reveal the future. So, what can we do to offset this truth? What could you do today so that you can thank yourself in the next 10 or 20 years rather than beating yourself up for not acting?
The compound effect is a topic that has thousands of publications surrounding it: from endless research to quite literally “The Compound Effect” by Daren Hardy.
In the book, Hardy talks about the “Magic Penny”. He asks the reader if they rather choose $3 millions now or a penny that doubles every day for 31 days. The novice investor may choose the $3 millions, yet, after day 31 had you chosen the penny you would’ve walked away with $10.7 millions.
Add Money Monthly
Creating a subscription plan in combination with the compound effect can generate drastically different results. I wanted to visually express the data by showing you the difference between someone who does not invest, someone who invests X principal amount at once, and someone who invests the same X principal amount but also subscribes (adds the principal amount) monthly.
We also wrapped up an article on Automation. In case you missed it, you can read more about it here.
We are not financial advisors and none of this information should be misconstrued as financial advice. We strongly suggest that you consult your personal financial advisors. We suggest that you continue the research before coming to a decision even if this article is considered a portion of your research.
*Please note all investing involves risk, including the possible loss of money you invest, and past performance does not guarantee future performance. Historical returns, expected returns, and probability projections are provided for informational and illustrative purposes, and may not reflect actual future performance.
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