The Law of Compound Interest:
Investing your money carefully and allowing it to grow at compound interest will eventually make you rich.
Compound interest is considered one of the great miracles of all of human history and economics. Albert Einstein described it as the most powerful force in our society.When you let money accumulate at compound interest over a long enough period of time, it increases more than you can imagine.
You can use the Rule of 72 to determine how long it would take for your money to double at any rate of interest. You simply divide the interest rate into the number 72. For example, if you were receiving eight- percent interest on your investment, and you divided the number 72 by eight, you would get the number nine. This means that it would take you nine years to double your money at eight percent interest.
It has been estimated that one dollar invested at three percent interest at the time of Christ would be worth half the money in the world today. If the money had been allowed to grow and double, and then double again, and then again, and again and again, it would be worth many billions or trillions of
dollars today.
The key to compound interest is to put the money away and never touch it.
Once you begin accumulating money and it begins to grow, you must never, never touch it or spend it for any reason. If you do, you lose the power of compound interest, and though you spend only a small amount today, you will be giving up what could be an enormous amount later on.
If you start early enough, invest consistently enough, never draw on your funds and rely on the miracle of compound interest, it will make you rich. An average person earning an average income who invested $100 per month from age 21 to age 65, and who earned a compounded rate of 10% over that time, would retire with a net worth of $1,118,000!
Begin a regular, monthly investment account and commit yourself to investing a fixed amount for the next five, ten or even twenty years. Select a company with a family of mutual funds and investment instruments, and keep your money working, month after month and year after year.
The Law of Accelerating Acceleration:
The faster you move toward financial freedom, the faster it moves toward you.
The more money you accumulate and the more success you achieve,the more and faster money and success seems to move toward you, from a variety of different directions.
Everyone who is financially successful today has had the experience of working extremely hard, sometimes for years, before they got their first real opportunity. But after that, more and more opportunities flowed to them, from all directions.
The major problem most successful people have is sorting out the opportunities that seem to come at them from everywhere. It will be the same for you.
Fully 80 percent of your success will come in the last 20 percent of the time
you invest.
This is a remarkable discovery. Just think! You will achieve only about 20 percent of the total success possible for you in the first 80 percent of the time and money that you invest in an enterprise, a career or a project. You will achieve the other 80 percent in the last 20 percent of the time and money that you invest.
Peter Lynch, the former manager of the Magellan Mutual Fund, one of the most successful mutual funds in history, said that the best investments he ever made were those that took a long time to come to fruition. He would often buy the stock of a company that did not increase in value for several years. Then it would take off and go up ten or twenty times in price. This strategy of picking stocks for the long term eventually made him one of the
most successful and highest paid money managers in America.
The Law of Expectations:
Whatever you expect, with confidence, becomes your own self-fulfilling prophecy.
You are always acting as a fortune-teller in your own life by the way you think and talk about how things are going to turn out. When you confidently expect good things to happen, good things usually happen to you. If you expect something negative to happen, you are usually not disappointed.
Wealthy people expect to be rich. Successful people expect to be successful. Happy, popular people expect to be happy and popular. And your expectations are largely under your control.
Expect the best of yourself. Imagine that you have unlimited abilities and that you can accomplish anything that you put your mind to. Imagine that your future is only limited by your own imagination, and that whatever you have accomplished up to now, it is only a fraction of what you are truly capable of achieving.
Imagine that your greatest moments lie ahead and that everything that has happened to you up to now has merely been a preparation for the great things that are yet to come.
Alright I will stop here. Next week I’ll continue with more of the laws. I believe you have grabbed something good from this report. Your comment is welcomed.culled from 21 absolutely law of money by brain tracy
Moreover”
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