Almost all money people have compound interest thinking, because compound interest is too powerful.
Compound interest was originally an economic concept, but in fact, it is also common in personal wealth accumulation and business.
How powerful is compound interest?
For example, if you can earn 2,500 yuan, there will be 25% income, then you will have 2,500 yuan in the first year, and you will continue to have 2,000 yuan in the second year, and in 30 years, how much annual income do you have? There is a gain of 75,000 yuan.
But it's still 10,000 yuan, and it's different in compound interest, for example, it's still 10,000 yuan compound interest, there will be no change in the first year, or 2,500, and it's different in the second year, it's 10,000 plus 2,500, and then multiplied by 25%, how much is that? It's about 3,100 yuan, so if it's 30 years, 10,000 yuan in 30 years, according to 25% of the income, how much is 30 years? More than 8 million.
If you are interested, you can calculate it yourself, this is the gap between 75,000 and more than 8 million, and the power of compound interest is so great.
So what kind of inspiration does this compounding effect have for individuals and businesses?
Some people may say, heck, the gap between me and the rich man is that he has original capital, and I don't have original capital is a very important factor, but through this compound interest, you can find that the original capital is not so much, it can be 10,000 or 1000.
As the old saying goes, people have two legs, and money has four legs.
Even if it is 10,000 yuan or 1,000 yuan, with the change of 30 years, he can become more than 8 million.
So no matter how small a bird is, with the blessing of the compound interest effect, it can also fly very high.
This is the first one, you are going to have a certain amount of original capital, but it doesn't need much.
The second is knowledge, knowledge will also have a compound interest effect, for example, you don't feel anything when you read a book, you don't feel anything when you read five books, but if you can read 50 books, 100 books, then he will have a compound interest effect, and your whole person will undergo a qualitative change, which is that knowledge will also have a compound interest effect.
The third is credibility, which also has a compounding effect. For example, a rich man will cherish his wings very much, so why should he cherish his wings?
Talent is important, of course, but when talent is compounded by credibility, his value can multiply thousands of times.
What is credibility? It is Liu Bei's words not to take the good as small, not to take the evil as small, why some people can talk about tens of millions, hundreds of millions of business, and some people talk about hundreds of millions of dollars of business, others scoff, here is the lack of credibility of the welfare effect.
The fourth is fitness, the same is true for fitness, you don't feel anything after one day of practice, you don't feel anything if you practice for five days, but after a year or two, the whole person's mental outlook will change greatly.
Although I am not a rich person, but the compound interest effect is very helpful to me, I didn't have any money at the beginning, and I didn't know anyone, but I have a little benefit, that is, I love to read, love to learn, I learn a lot of cutting-edge technology, learn a lot of cutting-edge concepts, so slowly many bosses want to talk to me when they start a new project.
I don't know what I'm talking about, but they all think that after talking to me, there will be some inspiration, and slowly I will enter some of their circles, and I will have more opportunities.
Some people may tell me that whoever is around me is not like this, and they broke out overnight.
I have seen a lot of nouveau riche, what I want to tell you is that the money of these nouveau riche comes and goes quickly, and they lose it quickly with their strength, and even some people have a life to earn money but do not have a life to spend, and we don't have to envy this money.
In addition to capital, the second is time, in the face of time, we have to be patient, you may do 99 things without any return, no return, but with the accumulation of time, there will always be one thing that will give you a great return, it can not only give you back everything you lost, but also let you gain more.