How the POWER of Compound Interest can make YOU RICH?

How the POWER of Compound Interest can make YOU RICH? Hey guys, Ben here & Welcome to Motivation 2 invest. In this video i'm going to discuss ONE OF THE MOST POWERFUL CONCEPTS IN THE UNIVERSE. Compound Interest? Can this really make YOU a millionaire? Albert Einstein Called Compound Interest the Eighth Wonder of the world. He who understand's it, earns it and he who doesn't PAYS it!  The Legendary investor Warren Buffett stated my wealth has come from a Combination of Living in America, Some lucky genes  & Compound interest. ---- So WHAT IS COMPOUND INTEREST? Well there are two type of interest you can receive the first is  Simple interest: This is fixed amount which you receive on your Initial Investment or principal. Let's say 2%. Compound Interest:  Whereas Compound Interest is where you recieve interest not only Principal investment but also on the interest recieved  thus the result is a compounding affect.  Comparing the Formula's for both Simple Interest & Compound Interest.  We can see simple interest is the Principal x Interest x Term  Whereas the compound interest formula is similar but to the Power of T (time) thus the longer you have invested for the more of that COMPOUNDING affect you will see.  So stay with me here guys, LETS dive in Now to the compound interest calculator for a few different growth rates.  -- 10% growth  15% growth rate 20% growth rate Personal Financial Goals: So really this is all about your own Personal financial Goals & Risk Tolerance. (1 & 2 mime)   Chasing higher growth generally can equal more risk. TIP. Eliminate/Reduce Personal Risk  This can lower overall perceieved risk. For example: Having Real Estate rental property or a Stable job  which produces a stable income to cover your living  costs. --- Then this free's you up to invest or slightly more high growth &  & potentially higher risk opportunities. It's not about being stupid, it's about MANAGING RISK. "Risk comes from not knowing what you are doing" So how can we make $1,000,000 with compound interest. (Dive into the calculator)  There is also the Rule of 72 which is a rule of thumb method of calculating how long an investment will take to double. t = 72/r     r = rate of return.  t = 72/10 = Approximately 7 years to double t = 72/20 = 3.6 years to double.  ------ Buffett Invested approximately $1 billion for 6.2% of Coca Cola in 1988.  Now the stock didn't move too high for the first 10 years!  However, after 1994 the stock flew! Coca Cola has thus returns buffett  nearly a 2000% return on his initial investment...not including a large dividend of around 3%.  In fact, though as Coca cola now makes up one of Berkshire hathaway largest positions Buffett's 3% dividend now generated approximately $600 Billion every year! Thus from buffett's initial investment he recieve's that back at least once every 2 years! Now this is not including the affect's on inflation but still that is an incredible return.  Watch full engaging videos on our popular Youtube channel: Motivation 2 invest (3 million views) https://www.youtube.com/channel/UCn6TvLMOvNdawu-ii6i9ubw Instagram: @Motivation2invest_ Stock Investing Strategy Course & VIP Community: https://www.motivation2invest.com/stock-research/