As we saw earlier, the number of periods has a huge effect on your total rate of return.

The more periods there are, the more multiplication takes place.  And each successive period multiplies a larger number than the last one.

For example:

1 x 2 = 2

2 x 2 = 4

4 x 2  = 8

8 x 2 = 16

This is just simple arithmetic, so simple that a child could understand it.  Yet it’s exactly how the rich get richer. 

Since most savings products pay you interest over time, the easiest way to multiply money is to allow time to work for you.  And the more time you have, the more your money will grow. 

Don’t Delay
Your time on this earth is limited, so if you don’t have a regular saving plan in place then you really need to start one immediately. 

The way compounding works, it’s only in the “final stages” that you start making the really big money.  But the rule of the multiplication game is…

You have to start with the small
numbers to generate the big ones

It’s a bit like a tornado picking up force.  It begins from a small movement of air, and slowly twists and turns itself into a massive force. 

So how do you get the most you can from everything you’ve got…?