Power of Compounding

“Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.”
Albert Einstein

compounding imageYes, you heard it right. These words were quoted some generations back, but it is as modern as today’s technology. I am sure, it isn’t that difficult to understand from the financial aspect, but the real problem has been, it’s awareness and it requires discipline to implement. That’s why there are very few on this planet that have been able to understand this concept and not to mention they have been reaping benefits, as a receiver from ages.

We are highly driven by our tendency to focus on complex things and unfortunately that goes with our finances too. Having said that, we are lured to get rich quickly methods, we fall for some fancy taglines without realizing what’s the real deal. This makes us vulnerable and we pay for our lack of understanding. I am not being antagonist and there are some really good financial opportunities available, however, it is the question of identifying the right one or else things get complex and we end up bearing the dead stock or a dead investment in the process. On the other hand the concept of compounding or earning compound interest is very simple, it does not require too much of thinking and can be easily planned.

PatienceAnother aspect is our short-lived patience, corresponding to the ill-effects of this fast paced world. Today we look at devices to help us almost on everything, we are stationed at one place, but things work around us, round the clock. Perhaps we could have such devices, created to stabilize our patience level as well because compounding is the pure product of patience.

If I go by what Albert Einstein said, I was on the payer’s side earlier, because I lacked understanding then and did not realize what compounding can do for me, but now I am in transition of becoming a receiver. I believe that money can never be enough for anyone of us, there is no end or limit that we can bring in our purview and label it saying,” this is enough”. You always would want to have another zero attached to the figure that you have or earn today.

So what did I do to make it work for me?, I decided to play with my apprehension for things and especially for money, I understand my spending habit too well, If I have got 100 bucks in my pocket I will ensure to do everything and anything to spend till the last penny lasts. However I knew this would not go for long, Hence, to make it work, I decided to set a certain percentage of money aside every month, ideally a very minimal amount that. Next thing I did was to have this amount removed from my bank account on the 1st of every month the moment I get paid like I never earned it. Similarly I created two more such buckets (investment plans) which comes from renowned financial institutions and they provide all the service to my doorstep, literally there is nothing I need to do it, All I have gotta do is ask. Sometimes you got to play with your mind like I said small things do not matter for the majority of us, especially when it comes to money. So setting up your investment in small buckets is helping me and I don’t feel the pain of parting away with the huge sum of money at one time. But it gradually set to grow into a big amount. The wealth created in this process is without taking any risk,

Now it has been several months, although I am a novice, I intend to continue this run for a long-term until these small buckets become large bath tubs compounding over the years to come. Well, it does not stop there. The reason is, these small investments are mostly in the form of recurring deposits or variable deposits termed for a certain period of time. You can rely on banks to create it for you and it does not require too much of an effort, you just have to give them consent for automating such transactions and they shall be happy to execute it. Finally, once your investments or savings matures added with the considerable sum of interest, you would have a decent amount of money to set it for real compounding. And the real compounding is to set that accumulated amount in the form of fixed deposit for several years and see your money growing. You have got the right to achieve your financial freedom
In case if you think, you are too weak to stay disciplined to let your money compound this way, you can ask your organization for some help. Now a days, in fact, many organization have introduced different schemes or fund where they compulsory deduct certain percentage of money from your salary which goes towards these funds, it follows the same principle of compounding and the best part is that you are not allowed to withdraw it for immediate use, it is only when you change the organization or after certain stipulated time frame like 5 yrs or so, you are entitled to receive it.

Dear Readers, I hope you enjoyed reading it, more than that I wish if it serves to be useful. Mostly, my source of information always has been the books that I read. This time, it came from, Tony Robbins, a strategist (that’s what he calls himself). He has recently written a book named ‘Money:  Master The Game – 7 Simple Steps to Financial Freedom’. The steps mentioned in this book are very simple to follow and the outcome is certainly awesome. Possibly you may have heard about him if not then I would recommend getting your copies today off the shelf or enrolling yourself to his seminars. He is a successful man, when I say successful; it is not because of the money he has made, but the kind of work he has been doing to make human lives better. His principles or rather his strategies on various subjects can be used at any stage of your life. All you need is the power to decide for yourselves because he believes that as humans we are gifted to choose and decide. According to him, Man’s destiny is shaped from the moment he decides. My life has changed largely by adopting his techniques and I am sure this would work at any given situation.

Note: My intention is not to demean or disregard your saving methods but to draw your attention what is available in your hands and easy to start.


Find your way out….

Find your way outThat was me, two years ago, who had no knowledge about the work that I do today. Sometimes people are afraid to change and often prefer to do what they have been doing for so many years. I wasn’t an exception until I was hit by a wave which took me off the part of an ocean where I loved being in, and found stranded on the shore I never knew before. It was a new experience for me, I never even thought in my dream to be in such a situation like this, not at least for what I did in life. But I guess that’s how life is. My heart was sinking and just when I felt that all the doors were shut and my journey has come to an end, That’s when something happened which taught me that It is not the end but the new beginning.With not much in hand to do, I found creatures, some different, some known that lived with the same plight and shared the similar fondness to the place where they came from. I kept wondering, here and there, looking for a solution, hoping to sail back somehow.

Fortunately, I met a few of them who shared similar interest and soon we became good friends. I had all the time in the world and an opportunity to explore. I had two options there, either to continue living in disgrace or to make my life more meaningful inviting changes that may lead me to  a new direction. As expected, I chose the latter. I started to explore and evaluate as to what this given condition or a situation has to offer. My pursuance started with too many ‘ifs’, what if this does not work out, What if I am setting myself for another failure, What if this expedition is not fruitful, What if……?

The days passed by and while I was still in the process of exploring, I saw my friends making their way out to sail again.  For a moment, I felt disappointed for having no one around me,  but at the same time I was happy for them to receive the opportunity and start again.  In the end, each of us, have to be on our own.

This entire situation turned out to be a blessing in disguise and hopes began to flourish again. I did not stop there and kept my search engine on and on…… The process of exploring and taking up new activities to find my way back helped me discover new talent and learn new skills which could have only increased my chance to sail again. Although, this time, I did not limit myself to the desire of sailing back towards the same direction, where I came from. This newly found me was ready to take up challenges and survive new waves of life.

Finally, my perseverance got paid off and the attributes that I had developed got me into that I feel proud to be a part of it today. Although the direction has changed, but I am living with this newly found passion, had I been limited earlier? I could have never had a chance to be here today.

For all the readers – This is a small snippet from the chapter of my life, where I was the protagonist. Many a times we are drawn towards the situation or a thing we never want in our lives. But the fact is, You cannot expect things to fall in place all the time. Sometimes it deviates to an undesired degree. The point is, that you cannot simply sit and do nothing about it. You may evaluate and wonder what did bring you into such situation, but at the same time, think about confronting it and building new avenues in the process which can make you a better person or perhaps may offer you something which you may not have even dreamed about. This has happened with me and can happen with any of us. Don’t just live with it, because you have all the power to change it and make it better.

On a different note: If you are a voracious reader, you may want to lay your hands on some of these. As a reader, I ensure to make my commute purposeful, I prefer feeding my mind with different reads. I am personally a fiction lover and I am fondly in love with Jeffery Archer’s work.  I deeply recommend his latest work on ‘Clifton Chronicles’.  This series began in 2011 and perhaps still continuing because I have not finished 2015 edition – ‘Mightier than the sword’ (don’t like to read the last page first). You may want to lay your hands on the entire  ‘Clifton Chronicle Series’

Wreck your brain, I just did mine……(Just for fun)

funnyWell, this is going to be the most offbeat post, perhaps I never intended to do. Somehow this seemed to be waiting for a very long time. Yes, you guessed it right, I am trying to be spontaneous. “He is a joke”, I just heard you, and I want me to be perceived this way, but mind you, only for this post. Who knows, I may ever write it again and still try to limit you guys to its extent. Never mind, I would not bother about that right now. Let us begin, just in case if you have not closed on me yet, but before that let me warn you, things that you are going to read further will have utter bullshit and nonsense stuff. I promise you, you would regret it the most, it is perhaps one of the stupid technique I may have used on this platform. Still not convinced, want to read anymore, that’s completely your choice now. Let me quickly place a disclaimer on this blog, probably somewhere in the mid of the sentences, no, no, absolutely no, told you I am really messing here and tarnishing my image here, where should I place it, yes right, once I finish writing. Sorry Disclaimer, you will have to wait for your turn, no.. no… don’t  cry, it’s all fine. See, I don’t like kids who don’t listen to me and act dirty. What did you say, Am I dirty? think twice before you call me, huh….phew, I am back, just had disclaimer claiming, Have I turned you off. Oh Gosh! I knew this was coming, Little Shark has jumped out of the tank to say hi, Well, being a sober gentleman I did say hello, but that was it, Now I see myself in its stomach and could literally feel its ribs tickling my back. Goodness Gracious, Little Shark has just eaten me, bloody hell, lucky my laptop had a tiny cutter. Now I can slit the skin open and I will be free. Alas! I am free, what a wonderful feeling, I never hoped to see myself back out here. What next? you still there, yes, I see you. Don’t worry I am as brave as my uncle’s turtle. I just did it with so ease, butter on bread huh… Why am I naked, bloody hell, I see my clothes hanging on dead shark’s tooth, that’s a quite pointed one..too easy, I just got it  back, you still there, close your eyes, you should not have seen me like this on the first place. Never mind, I require just little over a minute to get dressed. This is my Happy Birthday suit. (Have Fun)