Compounding
How money grows over time through reinvested returns
Week 3 Day 1: Interest on Interest
Compounding is when the money you earn starts earning its own money. Over time, the snowball grows faster and faster....
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View lesson →Week 3 Day 2: The Harvest Analogy
Plant 5 apple seeds instead of eating the apples. Next year you have 6 trees. The year after, 36. Soon you have an orchard. That is compounding....
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View lesson →Week 3 Day 3: The Trees Do the Work
You are not working any harder. You just planted the seeds instead of eating them. The trees do the work for you....
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View lesson →Week 3 Day 4: Compounding Is Simple, Not Magical
Compounding is not some secret of the wealthy. It is basic math that works for anyone with time and consistency....
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View lesson →Week 3 Day 5: Time Plus Consistency
Time plus consistency equals stability. You do not need to be brilliant. You need to be consistent and patient....
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View lesson →Week 3 Day 6: The Earlier You Start
The earlier you start, the easier everything becomes. Even small amounts planted early grow into something significant....
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View lesson →Week 3 Day 7: Replant, Don't Harvest
Compounding is the act of replanting your seeds instead of eating them. Every dollar reinvested is a new tree in your orchard....
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View lesson →Week 4 Day 1: The Simplest Shortcut in Finance
Divide 72 by your interest rate and you get the number of years it takes your money to double. That is the Rule of 72....
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View lesson →Week 4 Day 2: Double at 7%, Double Again
At 7% average return, your money doubles roughly every 10 years. $10,000 becomes $20,000, then $40,000, then $80,000....
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View lesson →Week 4 Day 3: The Savings Account Reality
At 2% in a savings account, the Rule of 72 says it takes 36 years for your money to double. Time is too valuable for that....
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View lesson →Week 4 Day 4: The Rule of 72 Works Against You Too
Credit card debt at 24% interest doubles in just 3 years. The Rule of 72 is a weapon that cuts both ways....
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View lesson →Week 4 Day 5: Three Doubles Changes Everything
Three doubling periods turn $10,000 into $80,000. Four turn it into $160,000. Five: $320,000. Each double is more powerful than the last....
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View lesson →Week 4 Day 6: Use It at the Dinner Table
Someone mentions a 12% return? You instantly know: 72 / 12 = doubles in 6 years. The Rule of 72 makes you financially fluent....
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View lesson →Week 4 Day 7: The Best Mental Shortcut You Will Ever Learn
The Rule of 72 costs nothing to learn and applies to every financial decision you will ever make. Carry it like a pocket knife....
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View lesson →Week 5 Day 1: A Penny or a Million?
Would you rather have $1,000,000 today or a penny that doubles every day for 30 days? The penny wins. By a lot....
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View lesson →Week 5 Day 2: The First 20 Days Feel Like Failure
After 20 of 30 days, the doubling penny is only worth $5,243. It does not look like it is working. It is....
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View lesson →Week 5 Day 3: Stopping at Day 27 Cost You $2.7 Million
The penny on day 27 is worth $671,089. On day 30, it is $5.37 million. Quitting 3 days early costs you 87% of the total....
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View lesson →Week 5 Day 4: Why Your Brain Gets It Wrong
Humans think in straight lines. Compounding grows in curves. This mismatch is why most people underestimate their investment potential....
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View lesson →Week 5 Day 5: The Grain of Rice on the Chessboard
Place one grain of rice on the first square of a chessboard. Double it each square. By square 64, you need 18 quintillion grains -- more than all the rice ever ...
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View lesson →Week 5 Day 6: Exponential Thinking as a Life Skill
Once you learn to see exponential growth, you see it everywhere: in investing, in technology, in learning, in habits....
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View lesson →Week 5 Day 7: Your Portfolio Is a Penny on Day 1
Every portfolio starts as a penny on day 1. It does not look like much. But the doublings have already begun....
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View lesson →Week 6 Day 1: $5 a Day Changes Everything
$5 a day invested at 7% for 30 years becomes roughly $184,000. You are not saving pocket change. You are building a fortune in slow motion....
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View lesson →Week 6 Day 2: The $100/Month Investor
Investing $100 a month from age 25 to 65 at 7% produces roughly $264,000. You contributed $48,000. The market added $216,000....
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View lesson →Week 6 Day 3: Automate It and Forget It
Set up automatic transfers on payday. The money moves before you can spend it. Automation removes willpower from the equation....
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View lesson →Week 6 Day 4: Your Raise Is an Investment Opportunity
Got a raise? Invest half of it before your lifestyle catches up. You will never miss money you never got used to spending....
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View lesson →Week 6 Day 5: The $50 Challenge
Find $50 in your monthly spending that you would not miss. A subscription you forgot about. A cheaper phone plan. That $50 invested is worth $60,000 over 30 yea...
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View lesson →Week 6 Day 6: Small and Consistent Beats Large and Sporadic
Investing $200 every month for 20 years beats investing $5,000 once every two years. Consistency compounds. Lump sums wait....
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View lesson →Week 6 Day 7: You Are Already Spending Enough to Be Rich
Most people do not have an income problem. They have an allocation problem. The money for wealth-building is already flowing through your accounts....
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View lesson →Week 8 Day 1: What Is a Dividend?
A dividend is a company's way of sharing profits with you. Own stock in a profitable company, and it pays you cash just for holding it....
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View lesson →Week 8 Day 2: DRIP: The One Checkbox That Matters
DRIP stands for Dividend Reinvestment Plan. Turn it on in your brokerage account has your dividend payments automatically buy more shares....
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View lesson →Week 8 Day 3: 85% of the Market's Return Came from Reinvested Dividends
Since 1960, roughly 85% of the S&P 500's total return came from reinvested dividends and their compounding. The price gain alone is the minority....
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View lesson →Week 8 Day 4: Dividends in a Down Market
When the market crashes, your dividends buy shares at discount prices. A crash is a sale if you keep reinvesting....
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View lesson →Week 8 Day 5: Dividend Growth: The Raise You Get Automatically
Many companies increase their dividends every year. Your income from your investments grows over time without you doing anything....
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View lesson →Week 8 Day 6: Do Not Spend Your Dividends Until You Retire
Every dividend you spend is a tree you chop down. During your accumulation years, reinvest everything. Let the orchard grow....
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View lesson →Week 8 Day 7: The Snowball Rolls Faster Every Year
Each year, your dividends buy more shares. Those shares pay more dividends. Those dividends buy more shares. The snowball accelerates forever....
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View lesson →Master Compounding
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