THE EIGHTH WONDER OF THE WORLD
“Compounding interest is the eighth wonder of the world. He who understands it, earns it… He who doesn’t ... pays it.” Albert Einstein
We often dismiss information that we feel does not pertain to us “directly”. We may focus on deduction we can use when it is time to file our taxes but we may not even consider other avenues to increase our “net income” of evidenced in the following.
In her article Retirement in Style, Author Catherine Sampson writes this statement:
I would like to point out another piece of information that is often missed. Although you can build an investment outside of a retirement account, you do not get the compounding effect of compound interest coupled with deferred taxes.
Where does this information lead us? I can’t speak for you but as for me and my family, we look into alternatives. (I am only referring to Financial matters now.) When we are talking about COMPOUND INTEREST, I am not leaving this only to physical money but this would include compounding effectiveness of manpower and soon to be discussed the effectiveness of VIRTUAL CURRENCIES.
First, let’s shed some light on the compounding effectiveness of manpower and just what we are referring to. Great wealth has be earned by companies by leveraging the physical efforts of hundreds to thousands of people. (Example, the top five CEO’s of Banks combined make approximately $100 Million Dollars) Do you think these 5 individuals are capable of roughly $20 Million Dollars in production yearly???
Another aspect of studying their incomes is to understand how they accept their incomes. Most of their incomes are compensated via stock and options. (This is another means of lowering their taxable incomes thus increasing their net incomes.)
EFFECTIVENESS OF VIRTUAL CURRENCIES
You can not score if you are not in the ball game!
I read a book years ago by Burke Hedges, “You Can’t Steal Second with Your Foot on First”. This book reminds me of taking chances. If you don’t take chances, you can not gain. I am not saying to “throw caution to the wind!
When we talk about Virtual Currencies, we are talking about Compounding in a different means. We are addressing the power of the Internet. The Internet allows us to leverage of the backs of technology. Virtual currency allows us the means of an online payment system that enhances of financial abilities we avail ourselves online.
In Catherine’s article, The Responsibility of Wealth, she writes:
The quote: “With great wealth comes great responsibility” is accredited to Bill Gates. It is one thing to earn money online and it is another thing to earn money online with and unlimited ability! Most people are self limiting. When they reach above where their mind finds them comfort, their mind will prevent them from moving forward at that point.
Bill Gates has it right when he states: “great responsibility” We often see people that have nothing, come into great wealth then lose everything. In the above quote, it becomes obvious that the mind of a person will create self limitations. Life doesn’t have to be self-limiting!
You can have a new experience with us at Compumatrix.