The Miracle of Compound Interest!

This is when things get serious. We’ve got a long way to go so let’s get to work.

I wanted to begin this session by giving you a quick task. It won't take long but my intention through Omniscience is to keep feeding in practicle ways of achieving freedom.

My new religion is not designed for completation, it's about doing things right now for the rewards available to you now. I don't profess to have all-consuming power, I am not a miracle maker ... I am however able to ofer you the odd 'real-world' wonder!

If you are leveraging Compound interest right now read on because I hope that by the end you'll realise how important it is to maximise it.

The currency I use in examples is irrelevant as the systems covered are universal. It is the formulae you need to concentrate on, how they work and what they can do for you.

Anyway I’m the author and it’s my prerogative to use whatever currency I like and take full advantage of my artistic licence. So if you don't like dollars then think in your own monetary denominations.

Each individual income stream we implement will not make you rich ... We are building multiple streams and as each tributary flows into the main waterway it acumulates until the torrent is unstoppable.

Trace the Nile to it's source and it begins life as a tiny little spring. As it journeys through Africa it's fed by small offshoots and riverlets until ... You get the picture!

A question for you:

Which would you rather have?

1. A million dollars today
2. One dollar doubling every day for a month

Well if you chose (2), by day 27 you would have $67,108,864 Yes that’s sixty seven million odd!

And it’s not even the end of the month.

This is an extreme case detailing the affect of Compound interest, but it illustrates the point - and no, I do not know where you can get a return of 100% Compound interest per day!!!

Compound interest has been described as the ‘eighth wonder of the world’.

It works by taking your investment and paying you interest on it. The next interest payment is then calculated on the original investment plus the interest. This keeps happening until you cash in. I'm probably not telling you anyting you don't already know here but what I do know is that most people dismiss the awesome power of Compound interest because they never see the true potential of this phenomenon.

Most people are stuck between a rock and a hard thing; they never see the big picture:

The dollar doubling each day

Compound interest works in the same way as the snowball rolling down the hill. It starts as a tiny snowflake that hits the right gradient. It begins to roll collecting more snowflakes as it goes, gathering speed and momentum until that once tiny, harmless flake has grown into an unstoppable avalanche.

If you aren’t already aware of the power of Compound interest then I’m introducing you to it now because we all need to be saving money on a regular basis, we all need be letting the magic work for us. You need to be collecting snowflakes now in order to create an avalanche later.

You must go out and find the highest Compound interest bearing savings plan you can find.

If not already you need to start saving now!

You can, and probably will say: "I can’t afford to save, I have no spare money."

or

If you do have a savings plan you may say: "I can’t afford to put any more away each month."

Bullshit!

There is not one person who will not be able to save on regular basis. At this point we are talking about $1.00 per day - $30 per month as a minimum!

Ideal case scenario is that you put away the maximum you can afford. Compound interest is passive, its a phenomenon that toils away 24/7 - 365 (24 hours a day, 365 days a year).

I once met a man who made his money from slot machines. When asked: "is there really any money in running them?"

He replied:"put it this way, whilst I’m stood here discussing this, people are putting money in my pocket. When I’m sat at the dinner table with the family on a Sunday, people are filling my machines and when I’m sleeping, people are parting with their loose change."

That’s the miracle of Compound interest, cash passivly fills the coffers without any extra effort from you.

If you don’t save at the moment you have to open a savings account now. We are laying the foundations for your future. Don’t even think about it at this stage.

As they say at Nike - just do it!

"I can’t, what if, I need this for that"... SHUT UP!!!

I could fill the next three pages by telling you how you can find an extra couple of quid a day. Cut down on smoking, drink a couple of pints less at the weekend, cut down on unnecessary groceries etc, etc, etc...

The plain truth is:

If you are serious about those dreams, you
will find your own way to save a dollar or two, or more a day.

Do not listen to your inner voice. It is not trained yet and will be telling you all sorts of things. Just go out and open that account if you don’t have one, and if you have, work out a way to put more into it or check out the interest rates and move to the most generous.

Do not be content with the pittance high street banks pay. It is obscene and an insult to you.

High street banks make billions and, as an integral part of The Machine, give you as little as they can possibly get away with in return.

Go and see an INDEPENDENT financial adviser. Make sure they are truly independent and are not pushing you towards a product which pays them high commissions.

Try to find them via recommendations.

Go to www.unbiased.co.uk for a searchable database of local advisers (UK only). Look in Yellow Pages or a business directory. It doesn’t matter how you find your contact just so long as you do. Always ask them how much they are getting paid from a product they recommend, ask them probing questions.

Unfortunately, the highest performing products are the ones that tend to pay the lowest commissions, that’s why you are sometimes swayed toward an inferior package. You are looking for a good-for-you relationship, not one that benefits the adviser.

Once you are happy you are getting good advice, heed it!

At this point you are only opening a Savings/Compound Interest bearing type account/plan.

I’ll write it again: If you haven’t already got one, open one!

If you do have one then over the next few weeks do some shopping around. The difference between the best and worst product comes out of your pocket. It could cost you tens of thousands of dollars by the time you have discovered you didn’t get the best advice at the time.

The time is now.

My savings account, at the time of writing is returning well above any high street accounts - @ 8% per month ... Almost 100% per year. That means if things continue at that rate my money Compounds considerably each year and we know where that leads, don’t we?

Some of you will say: "Blimey, lucky bugger! I wish I had an account that paid that, my mortgage would be paid off in no time."

What’s the difference between you and me?

Nothing! Sod all, zipidy squat.

I was given the advice and acted upon it.

What have I just given you? ...That same advice! I have no doubt that interest rates will change, but I’ll know exactly what to do when they do!!!

The Task

It's written here and you need to copy it down and put it in your Goals List:

I have exactly one month to open or change to the
HIGHEST INTEREST bearing account I can find.

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Post Script

Just after I wrote this the account did indeed stop performing, but because I had built a good relationship with my adviser I was able to sit down and take a calculated look at what was happening in the marketplace, consequently I was able manoeuvre back into a better position.

I was only able to do this because I followed my own advice. If I’d have simply let destiny take its course then I’d have been severely stung.
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Chaos