If you know or have known people who invested a lot of money when they were young and now they enjoy a happy and wealthy adulthood or retirement. Or have known people who keep investing despite the market scenario and always advise you to keep investing even small amount if you can. This is because they know one thing that others dont and that is the compound effect of investing.
The value of money increases with time and starts to compound at a higher speed when it becomes old how?
1+1=2
2+2=4
4+4=8
8+8=16
16+16=32
32+32=64
64+64=128
so if whatever you invest doubles every 2-3 years that means it be 128x after 6 double cycles. It might look smaller in the beginning, but it gets bigger and bigger over time, so if you invest 1 today it will become 128x after 6 double cycles. That is why, whovever is investing today advise you to start small which whatever you have, and who have done that, are enjoying the compounding effect now.
Start today!
Sarthak Jain Mon 9 Feb 3:54 PM IST
