Instant gratification. We are all guilty of it, (possibly some more than others) and that’s okay because the instantaneous world that we live in can benefit us quite a bit in the right settings. But when it comes to our financial lives, we need to learn to leave those feelings of instant gratification aside. Learning about the compound effect (also known as patience) can help us change the way we go about taking control of our financial lives.
The compound effect is the idea that small actions build up over time. In terms of money, the compound effect can greatly change what’s behind the dollar sign in your bank account.
For example, imagine you had the choice of taking $1 million dollars right now or a single penny that doubled in value every day for 31 days.
If you picked the penny, you’d have $10,737,418.24 on day 31… not a bad return.
However, the compound effect has much more far-reaching values than a nice story. It’s the fact that your daily habits add up to an amazing difference over time.
For more helpful information on this topic, click here. After reading the article you will find out how the compound effect can change your outlook on your finances.
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Info contained in this article from http://www.lifehack.org/articles/money/profiting-from-the-compound-effect-your-life.html