Compound benefits that make us rich

Many people say compound interest makes us rich. But how is compound interest formed? Or how do you make people rich? But not everyone can say it clearly.

First, let's first understand the simple compound interest formula: P (1+r) ^t

Does such a formula really make people rich? It doesn't just make people curious. Yes. It can really make people rich. P: principal, r: return rate, and important t: time.

In the investment process, whether or not you can be rich are the three major elements, which are essential.

The amount of your return must be affected by your principal amount and return rate. And your principal is so important. Because if you don't have capital, there's no such thing as an investment. It's even less likely to involve so-called wealth.

So, if you want to be rich, you have to do whatever it takes to get your capital.

Once you have your principal, the second factor is the return rate. The rate of return is hard to grasp. You might be able to get a good return today, but tomorrow? What about the day after tomorrow? Therefore, the return rate will be affected by risk, market, economic factors, etc. And many of these factors are beyond our control.

What we can do is find ways to raise capital, reduce risk, and increase return rates. However, this one may also depend on whether you have 🈶 related experience. Can you restrain it. Rational judgment and a tolerant attitude are all so important.

When it comes to step three, it's time. Buffett used the third element to make him the richest man in the world. If you look at Buffett's net wealth in his early years compared to today, you might wonder why he has hundreds of millions of dollars in wealth today? However, you didn't notice; in fact, his wealth increased dramatically in his old age. If you've read his story, you know that he started investing a long time ago and became rich over half of his year. Moreover, wealth continues to grow.

Therefore, invest early and manage your finances. In this way, you may be able to achieve wealth freedom as soon as possible.

OK. I'll share it here today. May the above article help you find the key to wealth as soon as possible.

Thank you.