Compound Money Quotes

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In regards to the price of commodities, the rise of wages operates as simple interest does, the rise of profit operates like compound interest. Our merchants and masters complain much of the bad effects of high wages in raising the price and lessening the sale of goods. They say nothing concerning the bad effects of high profits. They are silent with regard to the pernicious effects of their own gains. They complain only of those of other people.
Adam Smith (An Inquiry into the Nature and Causes of the Wealth of Nations)
Growth is driven by compounding, which always takes time. Destruction is driven by single points of failure, which can happen in seconds, and loss of confidence, which can happen in an instant.
Morgan Housel (The Psychology of Money)
There is thy gold, worse poison to men's souls, Doing more murder in this loathsome world, Than these poor compounds that thou mayst not sell.
William Shakespeare (Romeo and Juliet)
Beauty is not good capital. I compounds the oppression of gender. It constrains those who identify as women against their will. It costs money and demands money. It colonizes. It hurts. It is painful. It can never be fully satisfied. It is not useful for human flourishing. Beauty is, like all capital, merely valuable.
Tressie McMillan Cottom (Thick: And Other Essays)
Compounding works best when you can give a plan years or decades to grow. This is true for not only savings but careers and relationships. Endurance is key. And when you consider our tendency to change who we are over time, balance at every point in your life becomes a strategy to avoid future regret and encourage endurance.
Morgan Housel (The Psychology of Money: Timeless lessons on wealth, greed, and happiness)
Compounding doesn’t rely on earning big returns. Merely good returns sustained uninterrupted for the longest period of time—especially in times of chaos and havoc—will always win.
Morgan Housel (The Psychology of Money: Timeless lessons on wealth, greed, and happiness)
1. More than I want big returns, I want to be financially unbreakable. And if I’m unbreakable I actually think I’ll get the biggest returns, because I’ll be able to stick around long enough for compounding to work wonders.
Morgan Housel (The Psychology of Money)
To compound your money, and not your mistakes, your goal is to buy on the way up—not on the way down.
Mark Minervini (Think & Trade Like a Champion: The Secrets, Rules & Blunt Truths of a Stock Market Wizard)
HONESTY COMPOUNDS. It compounds exponentially. No matter what happens in your bank account, in your career, in your promotions, in your startups. Honesty compounds exponentially, not over days or weeks, but years and decades. More people trust your word and spread the news that you are a person to be sought out, sought after, given opportunity, given help, or given money. This is what will build your empire.
James Altucher (Choose Yourself)
For wicked people to do evil requires money, and good people superstition. Combining these elements and we get organized religion, but to achieve the worst of all evil conflate politics to the compound and the tragedies are endless.
Sean S. Kamali
Habits are the compound interest of self-improvement. The same way that money multiplies through compound interest, the effects of your habits multiply as you repeat them. They seem to make little difference on any given day and yet the impact they deliver over the months and years can be enormous. It is only when looking back two, five, or perhaps ten years later that the value of good habits and the cost of bad ones becomes strikingly apparent.
James Clear (Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones)
Money Compounding is one concept that does not hit you unless your stars are aligned
Manoj Arora (From the Rat Race to Financial Freedom)
All benefits in life come from compound interest, whether in money, relationships, love, health, activities, or habits. I only want to be around people I know I’m going to be around for the rest of my life. I only want to work on things I know have long-term payout.
Eric Jorgenson (The Almanack of Naval Ravikant: A Guide to Wealth and Happiness)
more money will often not solve the problem. In fact, it may compound the problem. Money often makes obvious our tragic human flaws, putting a spotlight on what we don’t know. That is why, all too often, a person who comes into a sudden windfall of cash—let’s say an inheritance, a pay raise, or lottery winnings—soon returns to the same financial mess, if not worse, than the mess they were in before.
Robert T. Kiyosaki (Rich Dad Poor Dad)
For with another part of his mind he felt the encroachment of a chilling fear, eclipsing all other feelings, that the thing they wanted was coming for him alone, before he was ready for it; it was a fear worse than the fear that when money was low one would have to stop drinking; it was compounded of harrowed longing and hatred, fathomless compunctions, and of a paradoxical remorse, for his failure to attempt finally something he was not going to have time for, to face the world honestly; it was the shadow of a city of dreadful night without splendour that fell on his soul.
Malcolm Lowry (Lunar Caustic)
More than I want big returns, I want to be financially unbreakable. And if I’m unbreakable I actually think I’ll get the biggest returns, because I’ll be able to stick around long enough for compounding to work wonders.
Morgan Housel (The Psychology of Money: Timeless lessons on wealth, greed, and happiness)
The Power of the Dog by Rudyard Kipling There is sorrow enough in the natural way From men and women to fill our day; And when we are certain of sorrow in store, Why do we always arrange for more? Brothers and Sisters, I bid you beware Of giving your heart to a dog to tear. Buy a pup and your money will buy Love unflinching that cannot lie-- Perfect passion and worship fed By a kick in the ribs or a pat on the head. Nevertheless it is hardly fair To risk your heart for a dog to tear. When the fourteen years which Nature permits Are closing in asthma, or tumour, or fits, And the vet's unspoken prescription runs To lethal chambers or loaded guns, Then you will find--it's your own affair-- But ... you've given your heart to a dog to tear. When the body that lived at your single will, With its whimper of welcome, is stilled (how still!). When the spirit that answered your every mood Is gone--wherever it goes--for good, You will discover how much you care, And will give your heart to a dog to tear. We've sorrow enough in the natural way, When it comes to burying Christian clay. Our loves are not given, but only lent, At compound interest of cent per cent. Though it is not always the case, I believe, That the longer we've kept 'em, the more do we grieve: For, when debts are payable, right or wrong, A short-time loan is as bad as a long-- So why in--Heaven (before we are there) Should we give our hearts to a dog to tear?
Rudyard Kipling (Collected Dog Stories)
If something compounds—if a little growth serves as the fuel for future growth—a small starting base can lead to results so extraordinary they seem to defy logic. It can be so logic-defying that you underestimate what’s possible, where growth comes from, and what it can lead to.
Morgan Housel (The Psychology of Money)
Right this moment: Pick an area of your life where you most want to be successful. Do you want more money in the bank? A trimmer waistline? The strength to compete in an Iron Man event? A better relationship with your spouse or kids? Picture where you are in that area, right now. Now picture where you want to be: richer, thinner, happier, you name it. The first step toward change is awareness. If you want to get from where you are to where you want to be, you have to start by becoming aware of the choices that lead you away from your desired destination.
Darren Hardy (The Compound Effect)
For wicked people to do evil requires money, and good people superstition. Combining these elements gives us organized religion, but to achieve the worst of all evil conflate politics to the compound and the tragedies are endless.
Sean Kamali
More than 2,000 books are dedicated to how Warren Buffett built his fortune. Many of them are wonderful. But few pay enough attention to the simplest fact: Buffett’s fortune isn’t due to just being a good investor, but being a good investor since he was literally a child. As I write this Warren Buffett’s net worth is $84.5 billion. Of that, $84.2 billion was accumulated after his 50th birthday. $81.5 billion came after he qualified for Social Security, in his mid-60s. Warren Buffett is a phenomenal investor. But you miss a key point if you attach all of his success to investing acumen. The real key to his success is that he’s been a phenomenal investor for three quarters of a century. Had he started investing in his 30s and retired in his 60s, few people would have ever heard of him. Consider a little thought experiment. Buffett began serious investing when he was 10 years old. By the time he was 30 he had a net worth of $1 million, or $9.3 million adjusted for inflation.16 What if he was a more normal person, spending his teens and 20s exploring the world and finding his passion, and by age 30 his net worth was, say, $25,000? And let’s say he still went on to earn the extraordinary annual investment returns he’s been able to generate (22% annually), but quit investing and retired at age 60 to play golf and spend time with his grandkids. What would a rough estimate of his net worth be today? Not $84.5 billion. $11.9 million. 99.9% less than his actual net worth. Effectively all of Warren Buffett’s financial success can be tied to the financial base he built in his pubescent years and the longevity he maintained in his geriatric years. His skill is investing, but his secret is time. That’s how compounding works. Think of this another way. Buffett is the richest investor of all time. But he’s not actually the greatest—at least not when measured by average annual returns.
Morgan Housel (The Psychology of Money: Timeless lessons on wealth, greed, and happiness)
I cannot say your worships have delivered the matter well when I find the ass in compound with the major part of your syllables [...] our very priests must become mockers if they shall encounter such ridiculous subjects as you are. When you speak best unto the purpose, it is not worth the wagging of your beards, and your beards deserve not so honorable a grave as to stuff a botcher's cushion or to be entombed in an ass's packsaddle [...] more of your conversation would infect my brain, being the herdsmen of the beastly plebeians. I will be bold to take my leave with you.
William Shakespeare (Coriolanus)
Persistence trumps talent. What's the most powerful force in the universe? Compound interest. It builds on itself. Over time, a small amount of money becomes a large amount of money. Persistence is similar. A little bit improves performance, which encourages greater persistence which improves persistence even more. And on and on it goes. Lack of persistence works the same way -- only in the opposite direction. Of course talent is important, but the world is lit erred with talented people who didn't persist, who didn't put in the hours, who gave up too early, who thought they could ride on talent alone. Meanwhile, people who might have less talent pass them by. That's why intrinsic motivation is so important. Doing things not the get an external reward like money or a promotion, but because you simple like doing it. The more intrinsic motivation you have , the more likely you are to persist. The more you persist, the more likely you are to succeed.
Daniel H. Pink (The Adventures of Johnny Bunko: The Last Career Guide You'll Ever Need)
But since Catt was more realist than fabulist, she understood her actual death at the hands of her killer would be something much slower. It would be a classical feminine death, like a marriage…Raised by meek working-class parents, she despised petty groveling and had no talent for making shit up. She wanted to be a “real” intellectual moving with dizzying freedom between high and low points in the culture. And to a certain extent, she’d succeeded. Catt’s semi-name attracted a following among Asberger’s boys, girls who’d been hospitalized for mental illness, sex workers, Ivy alumnae on meth, and always, the cutters. With her small self-made fortune, Catt saw herself as Moll Flanders, out-sourcing her visiting professorships and writing commissions to younger artists whose work she believed in. But she’d reached a point lately where the same young people she’d helped were blogging against her, exposing the ‘cottage industry’ she ran out of her Los Angeles compound facing the Hollywood sign … the same compound these bloggers had lived in rent-free after arriving from Iowa City, Alberta, New Zealand. Loathing all institutions, Catt had become one herself. Even her dentist asked her for money.
Chris Kraus (Summer of Hate)
About 4,400 years ago 8 people stepped off Noah’s ark. According to the United Nations Population Growth Statistics, the world’s population grows at about .47% per year. That is the growth rate for all civilizations who kept records. Suppose you put $8.00 in the bank 4,400 years ago and received .47% a year. How much money would you have? What a coincidence! It would be about $7,000,000,000. That’s kind of odd, because 4,400 years ago 8 people stepped off the ark and now we have about 7,000,000,000 people on planet earth. God’s math works! Compound interest is something we teach to seventh-graders. You don’t have to be a professor to figure this out. A twelve-year-old can do the calculation. Ask any seventh-grader, the algebraic equation looks like this: A=P (1+r/n)t . . . where "A " is the ending amount (about 7,000,000,000 in this case), "P " is the beginning amount (8 in this case), "r " is the interest rate (.47% in this case), "n " is the number of compoundings a year (1 in this case), and "t " is the total number of years (4,400 in this case).
Michael Ben Zehabe (Unanswered Questions in the Sunday News)
DEPARTURE The figs on the fig tree in the yard are green; Green, also, the grapes on the green vine Shading the brickred porch tiles. The money’s run out. How nature, sensing this, compounds her bitters. Ungifted, ungrieved, our leavetaking. The sun shines on unripe corn. Cats play in the stalks. Retrospect shall not soften such penury— Sun’s brass, the moon’s steely patinas, The leaden slag of the world— But always expose The scraggy rock spit shielding the town’s blue bay Against which the burnt of outher sea Beats, is brutal endlessly. Gull-fouled, a stone hut Bares its low lintel to corroding weathers: Across the jut of ochreous rock Goats shamble, morose, rank-haired, To lick the sea-salt. --written 1956
Sylvia Plath (The Colossus and Other Poems)
When I tell young parents about the power of compounding money, they often want to set money aside for their children’s future. “Setting aside” money for a child, however, is very different from encouraging a child to earn, save, and invest. ​Giving money promotes weakness and dependence. Teaching money lessons and cheerleading the struggle promotes strength, independence, and pride.
Andrew Hallam (Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School)
In 1970, Alix Kates Shulman, a wife, mother, and writer who had joined the Women's Liberation Movement in New York, wrote a poignant account of how the initial equality and companionship of her marriage had deteriorated once she had children. "[N]ow I was restricted to the company of two demanding preschoolers and to the four walls of an apartment. It seemed unfair that while my husband's life had changed little when the children were born, domestic life had become the only life I had." His job became even more demanding, requiring late nights and travel out of town. Meanwhile it was virtually impossible for her to work at home. "I had no time for myself; the children were always there." Neither she nor her husband was happy with the situation, so they did something radical, which received considerable media coverage: they wrote up a marriage agreement... In it they asserted that "each member of the family has an equal right to his/her own time, work, values and choices... The ability to earn more money is already a privilege which must not be compounded by enabling the larger earner to buy out of his/her duties and put the burden on the one who earns less, or on someone hired from outside." The agreement insisted that domestic jobs be shared fifty-fifty and, get this girls, "If one party works overtime in any domestic job, she/he must be compensated by equal work by the other." The agreement then listed a complete job breakdown... in other worde, the agreement acknowledged the physical and the emotional/mental work involved in parenting and valued both. At the end of the article, Shulman noted how much happier she and her husband were as a result of the agreement. In the two years after its inception, Shulman wrote three children's books, a biography and a novel. But listen, too, to what it meant to her husband, who was now actually seeing his children every day. After the agreement had been in effect for four months, "our daughter said one day to my husband, 'You know, Daddy, I used to love Mommy more than you, but now I love you both the same.
Susan J. Douglas (The Mommy Myth: The Idealization of Motherhood and How It Has Undermined All Women)
The earlier you start making small changes, the more powerfully the Compound Effect works in your favor. Suppose your friend listened to Dave Ramsey’s advice and began putting $250 a month into an IRA when she got her first job after graduating from college at age twenty-three. You, on the other hand, don’t start saving until you’re forty. (Or maybe you started saving a little earlier but cleaned out your retirement account because you didn’t notice any great gains.) By the time your friend is forty, she never has to invest another dollar and will have more than a $1 million by the age of sixty-seven, growing at 8 percent interest compounded monthly. You continue to invest $250 every month until you reach sixty-seven, the normal retirement age for Social Security for those born after 1960. (That means you’re saving for twenty-seven years in contrast to her seventeen years.) When you’re ready to retire, you’ll have less than $300,000 and will have invested $27,000 more than your friend. Even though you saved for many more years and invested much more cash, you still ended up with less than a third of the money you could have had. That’s what happens when we procrastinate and neglect necessary behaviors, habits, and disciplines. Don’t wait another day to start the small disciplines that will lead you in the direction of your goals!
Darren Hardy (The Compound Effect)
Their [plant secondary compounds] healthful effects in humans, however, are not well understood, in part because things in nature like coriander and basil can't be patented so there isn't a lot of money being thrown at them, and in part because long-term studies that measure small effects of low doses are expensive and don't yield the kind of unambiguous, major effects you get with pharmaceuticals, but mainly because preventions are never as exciting as cures.
Mark Schatzker (The Dorito Effect: The Surprising New Truth About Food and Flavor)
None of it made any difference. The hollow feeling refused to go away. The next days were very hard. I found myself in the grip of a crippling ennui. I was back at square one, but I couldn’t bring myself to resume my job hunt; it was all I could do to drag myself from the bedroom floor to the sofa. With every passing day my financial affairs grew more ruinous, and it became harder and harder even to conceive of how I might dig myself out of the hole I was in—which only compounded my ennui, and my disinclination to do anything about it.
Paul Murray
Black women have worked hard to write a counternarrative of our worth in a global system where beauty is the only legitimate capital allowed women without legal, political, and economic challenge. That last bit is important. Beauty is not good capital. It compounds the oppression of gender. It constrains those who identify as women against their will. It costs money and demands money. It colonizes. It hurts. It is painful. It can never be fully satisfied. It is not useful for human flourishing. Beauty is, like all capital, merely valuable.13
Tressie McMillan Cottom (Thick: And Other Essays)
Somehow, despite her politic and smarts, she had become a wife, and wives, as we all know, are invisible. The midnight elves of marriage. The house in the country, the apartment in the city, the taxes, the dog, all were her concern: he had no idea what she did with her time. It would have been compounded with children: thank goodness for childlessness, then. There was also this: for a number of his plays, at least half, she would silently steal in at night and refine what he had written. [Not rewrite; edit, burnish, make glow.] And she ran the business side of his work; she had horrified visions of all the money he would have let evaporate in his goodwill and indolence.
Lauren Groff (Fates and Furies)
The father of this pleasant grandfather, of the neighbourhood of Mount Pleasant, was a horny-skinned, two-legged, money-getting species of spider who spun webs to catch unwary flies and retired into holes until they were entrapped. The name of this old pagan's god was Compound Interest. He lived for it, married it, died of it. Meeting with a heavy loss in an honest little enterprise in which all the loss was intended to have been on the other side, he broke something--something necessary to his existence, therefore it couldn't have been his heart--and made an end of his career. As his character was not good, and he had been bred at a charity school in a complete course, according to question and answer, of those ancient people the Amorites and Hittites, he was frequently quoted as an example of the failure of education.
Charles Dickens (Bleak House)
The Air Force has always had more money than sales resistance, and they bought a one-year program (probably for something in the order of a hundred or a hundred and fifty thousand dollars) and in June of 1961 Hawkins and Summers punched the “start” button and the machine started to shuffle IBM cards. And to print out structures that looked like road maps of a disaster area, since if the compounds depicted could even have been synthesized, they would have, infallibly, detonated instantly and violently. The machine’s prize contribution to the cause of science was the structure, to which it confidently attributed a specific impulse of 363.7 seconds, precisely to the tenth of a second, yet. The Air Force, appalled, cut the program off after a year, belatedly realizing that they could have got the same structure from any experienced propellant man (me, for instance) during half an hour’s conversation, and at a total cost of five dollars or so. (For drinks. I would have been afraid even to draw the structure without at least five Martinis under my belt.)
John Drury Clark (Ignition!: An Informal History of Liquid Rocket Propellants (Rutgers University Press Classics))
The Feeding of the Muse then, which we have spent most of our time on here, seems to me to be the continual running after loves, the checking of these loves against one’s present and future needs, the moving on from simple textures to more complex ones, from naïve ones to more informed ones, from nonintellectual to intellectual ones. Nothing is ever lost. If you have moved over vast territories and dared to love silly things, you will have learned even from the most primitive items collected and put aside in your life. From an ever-roaming curiosity in all the arts, from bad radio to good theatre, from nursery rhyme to symphony, from jungle compound to Kafka’s Castle, there is basic excellence to be winnowed out, truths found, kept, savored, and used on some later day. To be a child of one’s time is to do all these things. Do not, for money, turn away from all the stuff you have collected in a lifetime. Do not, for the vanity of intellectual publications, turn away from what you are—the material within you which makes you individual, and therefore indispensable to others.
Ray Bradbury (Zen in the Art of Writing)
The American criminal justice system’s unwillingness to admit fallibility compounds the injustices it creates. Many states do absolutely nothing for people who have been exonerated. They provide no compensation for the many years of life and earnings lost. They do not even offer an official apology. Cruelly, they often do not expunge the exonerated person’s record, making it difficult for the person to get an apartment or a job. From the viewpoint of dissonance theory, we can see why the victims of wrongful convictions are treated so harshly. That harshness is in direct proportion to the system’s inflexibility. If you know that errors are inevitable, you will not be surprised when they happen and you will have contingencies in place to remedy them. But if you refuse to admit to yourself or the world that mistakes do happen, then the exoneration of those who have been wrongfully imprisoned is stark, humiliating evidence of how wrong you are. Apologize to them? Give them money? Don’t be absurd. They got off on a technicality. Oh, the technicality was DNA? Well, they were guilty of something else.
Carol Tavris (Mistakes Were Made (But Not by Me): Why We Justify Foolish Beliefs, Bad Decisions, and Hurtful Acts)
But most investors do capitulate eventually. They simply run out of the resolve needed to hold out. Once the asset has doubled or tripled in price on the way up — or halved on the way down — many people feel so stupid and wrong, and are so envious of those who’ve profited from the fad or side-stepped the decline, that they lose the will to resist further. My favorite quote on this subject is from Charles Kindleberger: “There is nothing as disturbing to one’s well-being and judgment as to see a friend get rich” (Manias, Panics, and Crashes: A History of Financial Crises, 1989). Market participants are pained by the money that others have made and they’ve missed out on, and they’re afraid the trend (and the pain) will continue further. They conclude that joining the herd will stop the pain, so they surrender. Eventually they buy the asset well into its rise or sell after it has fallen a great deal. In other words, after failing to do the right thing in stage one, they compound the error by taking that action in stage three, when it has become the wrong thing to do. That’s capitulation. It’s a highly destructive aspect of investor behavior during cycles, and a great example of psychology-induced error at its worst.
Howard Marks (Mastering The Market Cycle: Getting the odds on your side)
Rejecting failure and avoiding mistakes seem like high-minded goals, but they are fundamentally misguided. Take something like the Golden Fleece Awards, which were established in 1975 to call attention to government-funded projects that were particularly egregious wastes of money. (Among the winners were things like an $84,000 study on love commissioned by the National Science Foundation, and a $3,000 Department of Defense study that examined whether people in the military should carry umbrellas.) While such scrutiny may have seemed like a good idea at the time, it had a chilling effect on research. No one wanted to “win” a Golden Fleece Award because, under the guise of avoiding waste, its organizers had inadvertently made it dangerous and embarrassing for everyone to make mistakes. The truth is, if you fund thousands of research projects every year, some will have obvious, measurable, positive impacts, and others will go nowhere. We aren’t very good at predicting the future—that’s a given—and yet the Golden Fleece Awards tacitly implied that researchers should know before they do their research whether or not the results of that research would have value. Failure was being used as a weapon, rather than as an agent of learning. And that had fallout: The fact that failing could earn you a very public flogging distorted the way researchers chose projects. The politics of failure, then, impeded our progress. There’s a quick way to determine if your company has embraced the negative definition of failure. Ask yourself what happens when an error is discovered. Do people shut down and turn inward, instead of coming together to untangle the causes of problems that might be avoided going forward? Is the question being asked: Whose fault was this? If so, your culture is one that vilifies failure. Failure is difficult enough without it being compounded by the search for a scapegoat. In a fear-based, failure-averse culture, people will consciously or unconsciously avoid risk. They will seek instead to repeat something safe that’s been good enough in the past. Their work will be derivative, not innovative. But if you can foster a positive understanding of failure, the opposite will happen. How, then, do you make failure into something people can face without fear? Part of the answer is simple: If we as leaders can talk about our mistakes and our part in them, then we make it safe for others. You don’t run from it or pretend it doesn’t exist. That is why I make a point of being open about our meltdowns inside Pixar, because I believe they teach us something important: Being open about problems is the first step toward learning from them. My goal is not to drive fear out completely, because fear is inevitable in high-stakes situations. What I want to do is loosen its grip on us. While we don’t want too many failures, we must think of the cost of failure as an investment in the future.
Ed Catmull (Creativity, Inc.: an inspiring look at how creativity can - and should - be harnessed for business success by the founder of Pixar)
*Wife's Letter* Pt2 ... Nevertheless, these notes were a terrible confession. I felt as if I had been forced onto an operating table, although I was not sick, and hacked up indiscriminately with a hundred different knives and scissors, even the uses of which were incomprehensible. With this in mind, please read through what you have written once again. Surely even you will be able to hear my cries of pain. If I had the time, I should like to explain the significance of those cries one by one. But it would be dreadful if I were so careless as to let you return while I was still here. It really would be dreadful. While you spoke of the face as being some kind of roadway between fellow human beings, you were like a snail that thinks only of its own doorway. You were showing off. Even though you had forced me into a compound where I had already been, you set up a fuss as if I had scaled a prison wall, as if I had absconded with money. And so, when you began to focus on my face you were flustered and confused, and without a word you at once nailed up the door of the mask. Indeed, as you said, perhaps death filled the world. I wonder if scattering the seeds of death is not the deed of men who think only of themselves, as you do. You don’t need me. What you really need is a mirror. Because any stranger is for you simply a mirror in which to reflect yourself. I don’t ever again want to return to such a desert of mirrors. My insides have almost burst with your ridicule. I shall never be able to get over it, never.
Kōbō Abe (The Face of Another)
Yet a much more fundamentally political dimension of the socially constructed nature of capital - nothing less than the specification of a parallel universe with its own natural laws and rules for the physical existence and subsistence of financial capital and its interaction with the other factors of production - has also often been overlooked in contemporary academic literature. Under the current monetary arrangements financial capital is a peculiar creature indeed. Money can be created ex nihilo at the stroke of a pen - or a keyboard - by a specific type of legal person entrusted with the task, not other legal or natural person. With the socially constructed ability to attract compound interest in a world where physical assets rot and break, it does not share the same physical reality with the mere mortal factors of production: even in cases where productive investments which enable the payment of interest in real terms can be identified, the compounding of interest on financial capital is not temporally limited to the period that the relevant physical assets can continue to produce exponential returns in real terms. Rather than representing accumulated wealth that could be "saved" to finance investment, the bulk of money disappears as soon as other factors of production are not willing to pay a tribute to induce its continuing circulation in the form of interest payments. In addition to the inherently political nature of specifications of money have been detached from virtually any substantive connection to the rules or the realities experienced by other factors of production in the physical world that is nonetheless supposed to achieve economic efficiency and a host of other objectives through monetary calculation and monetarily mediated social relationships deserves particular scrutiny.
Tero Auvinen (On Money)
One particularly distressing example of the high cost to feminist progress exacted by the war is what happened in Pakistan after the capture of Osama bin Laden in Abbottabad, Pakistan, in 2011. In the run-up to his capture, the CIA and the U.S. military allegedly worked with the charity Save the Children in hiring Dr. Shakil Afridi, a Pakistani physician, to run a fake Hepatitis B vaccination program as a front for their surveillance operations.15 Per CIA instructions, Dr. Afridi and a female healthcare worker visited the bin Laden compound under the guise of administering vaccinations and managed to gain access, although they did not see bin Laden. In 2012, all foreign Save the Children staff were expelled from Pakistan, and in 2015, the entire organization there was required to shut its doors, despite having denied (and continuing to deny) that it was involved in this effort. The CIA managed to get their guy, but when the Pakistanis, irate at not having been told about the raid, expelled U.S. military trainers from Islamabad, they were immediately threatened with a cut of the $800 million aid package that the U.S. had promised, thus exposing yet again the coercive power that aid wields. The loss of aid money was not, however, the worst impact of the tragedy. As the British medical journal The Lancet reported, the unintended victims of the tragedy were the millions of Pakistani children whose parents now refused to have them vaccinated amidst rising rates of polio, a disease that vaccination had essentially extinguished in Western countries by the mid-twentieth century.16 In their view, if the CIA could hire a doctor to run a fake vaccine program, then the whole premise of vaccinations became untrustworthy. Within a few years of the raid, Pakistan had 60 percent of all the world’s confirmed polio cases.17
Rafia Zakaria (Against White Feminism: Notes on Disruption)
Collateral Capacity or Net Worth? If young Bill Gates had knocked on your door asking you to invest $10,000 in his new company, Microsoft, could you get your hands on the money? Collateral capacity is access to capital. Your net worth is irrelevant if you can’t access any of the money. Collateral capacity is my favorite wealth concept. It’s almost like having a Golden Goose! Collateral can help a borrower secure loans. It gives the lender the assurance that if the borrower defaults on the loan, the lender can repossess the collateral. For example, car loans are secured by cars, and mortgages are secured by homes. Your collateral capacity helps you to avoid or minimize unnecessary wealth transfers where possible, and accumulate an increasing pool of capital providing accessibility, control and uninterrupted compounding. It is the amount of money that you can access through collateralizing a loan against your money, allowing your money to continue earning interest and working for you. It’s very important to understand that accessibility, control and uninterrupted compounding are the key components of collateral capacity. It’s one thing to look good on paper, but when times get tough, assets that you can’t touch or can’t convert easily to cash, will do you little good. Three things affect your collateral capacity: ① The first is contributions into savings and investment accounts that you can access. It would be wise to keep feeding your Golden Goose. Often the lure of higher return potential also brings with it lack of liquidity. Make sure you maintain a good balance between long-term accounts and accounts that provide immediate liquidity and access. ② Second is the growth on the money from interest earned on the money you have in your account. Some assets earn compound interest and grow every year. Others either appreciate or depreciate. Some accounts could be worth a great deal but you have to sell or close them to access the money. That would be like killing your Golden Goose. Having access to money to make it through downtimes is an important factor in sustaining long-term growth. ③ Third is the reduction of any liens you may have against these accounts. As you pay off liens against your collateral positions, your collateral capacity will increase allowing you to access more capital in the future. The goose never quit laying golden eggs – uninterrupted compounding. Years ago, shortly after starting my first business, I laughed at a banker that told me I needed at least $25,000 in my business account in order to borrow $10,000. My business owner friends thought that was ridiculously funny too. We didn’t understand collateral capacity and quite a few other things about money.
Annette Wise
Wife's Letter (excerpt) It was not the mask that died among the boots, but you. The girl with the yoyo was not the only one to know about your masked play. From the very first instant, when, elated with pride, you talked about the distortion of the magnetic field, I too saw through you completely. Please don’t insult me any more by asking how I did it. Of course, I was flustered, confused, and frightened to death. Under any circumstances, it was an unimaginably drastic way of acting, so different from your ordinary self. It was hallucinatory, seeing you so full of self-confidence. Even you knew very well that I had seen through you. You knew and yet demanded that we go on with the play in silence. ... But you went from one misunderstanding to the next, didn’t you? You write that I rejected you, but that’s not true. Didn’t you reject yourself all by yourself?.. In a happy frame of mind, I reflected that love strips the mask from each of us, and we must endeavor for those we love to put the mask on so that it can be taken off again. For if there is no mask to start with, there is no pleasure in removing it, is there? ... Is what you think to be the mask in reality your real face, or is what you think to be your real face really a mask? Yes, you do understand. Anyone who is seduced is seduced realizing this. ... At first you were apparently trying to get your own self back by means of the mask, but before you knew it you had come to think of it only as your magician’s cloak for escaping from yourself. So it was not a mask, but somewhat the same as another real face, wasn’t it? You finally revealed your true colors. It was not the mask, but you yourself. It is meaningful to put a mask on, precisely because one makes others realize it is a mask. Even with cosmetics, which you abominate so, we never try to conceal the fact that it is make-up. After all, it was not that the mask was bad, but that you were too unaware of how to treat it. Even though you put the mask on, you could not do a thing while you were wearing it. Good or bad, you could not do a thing. All you could manage was to wander through the streets and write long, never-ending confessions, like a snake with its tail in its mouth. It was all the same to you whether you burned your face or didn’t, whether you put on a mask or didn’t. You were incapable of calling the mask back. Since the mask will not come back, there is no reason for me to return either. ... While you spoke of the face as being some kind of roadway between fellow human beings, you were like a snail that thinks only of its own doorway. You were showing off. Even though you had forced me into a compound where I had already been, you set up a fuss as if I had scaled a prison wall, as if I had absconded with money. And so, when you began to focus on my face you were flustered and confused, and without a word you at once nailed up the door of the mask. Indeed, as you said, perhaps death filled the world. I wonder if scattering the seeds of death is not the deed of men who think only of themselves, as you do. You don’t need me. What you really need is a mirror. Because any stranger is for you simply a mirror in which to reflect yourself.
Kōbō Abe (The Face of Another)
In April, 1926, France and the United States finally negotiated a war debt settlement at forty cents on the dollar. The [French] budget was at last fully balanced. Still the franc kept falling. By May, the exchange rate stood at over thirty to the dollar. With a currency in free-fall, prices now rising at 2% a month - over 25% a year - and the Government apparently impotent, everyone made the obvious comparison with the situation in Germany four years earlier. In fact, there was no real parallel. Germany in 1922 had lost all control of its budget deficit and in that single year expanded the money supply ten fold. By contrast, the French had largely solved their fiscal problems and its money supply was under control. The main trouble was the fear that the deep divisions between the right and left had made France ungovernable. The specter of chronic political chaos associated with revolving door governments and finance ministers was exacerbated by the uncertainty over the governments ability to fund itself given the overhang of more than $10 billion in short term debt. It was this psychology of fear, a generalized loss of nerve, that seemed to have gripped French investors and was driving the downward spiral of the franc. The risk was that international speculators, those traditional bugaboos of the Left, would create a self-fulfilling meltdown as they shorted the currency in the hope of repurchasing it later at a lower price thereby compounding the very downward trend that they were trying to exploit. It was the obverse of a bubble where excessive optimism translates into rising prices which then induces even more buying. Now excessive pessimism was translating into falling prices which were inducing even more selling. In the face of this all embracing miasma of gloom neither the politicians nor the financial establishment seemed to have any clue what to do.
Liaquat Ahamed (Lords of Finance: The Bankers Who Broke the World)
The invaders brought into Britain a principle common to all Germanic tribes, namely, the use of the money power to regulate all the legal relations of men. If there was any equality it was equality within each social grade. If there was liberty it was mainly liberty for the rich. If there were rights they were primarily the rights of property. There was no crime committed which could not be compounded by a money payment.
Winston S. Churchill (The Birth of Britain (A History of the English Speaking Peoples #1))
It’s Just Not Logical Compound interest also gives results that don’t look at all logical. Think about two young people who want to start investment programs. One starts at 18 years of age and faithfully invests just $1000 a year. At age 30 she stops this particular program so she can buy a house and start paying it off. She leaves the original investment to run along on its own with the earnings compounding. The other investor dithers around until age 30 and then starts to invest too. However, to make up for lost time, he puts away $2000 a year till age 65. Who do you think would end up with the most money if they both averaged 10% per annum? Is it the woman who invested $1000 a year for 13 years and then let the balance compound for 35 years, or the man who invested $2000 a year for 35 years? Amazing as it may seem, the woman would have $690,000 for a total investment of $13,000; the man would have $542,000 for a total investment of $70,000. Can you see why it happens? Because after 13 years her $1000 a year has grown to $24,500 and the compound growth on that in the 14th year alone is $2450 a year. That is almost 25% more than the man was contributing. Accordingly he can never catch her, only because she started first.
Noel Whittaker (Making Money Made Simple)
Suppose that we believe that in 200 years, people would be prepared to pay a million dollars (that's in today's dollars, not inflated ones) to be able to have an unspoilt valley. Now imagine that today we can profit by cutting down the forest in the valley, which will never regrow. If we apply an annual discount rate of 5 percent, compounded exponentially, how big would that profit have to be to justify the loss of a million dollars in 2210? The answer, surprisingly, is just sixty dollars! That's all that a million dollars in 200 years is worth, at that rate of discount. Obviously, then, if we use a 5 percent discount rate, values gained one thousand years in the future scarcely count at all. This is not because of any uncertainty about whether there will be human beings or other sentient creatures inhabiting this planet at that time, but merely because of the compounding effect of the rate of return on money invested now.
Peter Singer (Practical Ethics)
For example, if an investment is generating 6% after tax return, you would double your investments in 12 years (72/6). If you could increase your after tax return to 9%, your investment would double in 8 years (72/9). While this may not matter for 1-2 years, but in 48 years, Rs. 100,000 would double 4 times (16x) at 6% and 6 times (64x) at 9% and become Rs. 1,639,387 and Rs. 6,258,524, respectively. If you invest in a way that generates 12% or 15% annual return, your investment would be Rs. 23,039,078 or Rs. 81,940,071 in 48 years. Increasing the return from 6% to 15% could give you 50 times more money (1,639,387 81,940,071) in 48 years. This is the power of compounding and higher tax free return.
Jigar Patel (NRI Investments and Taxation: A Small Guide for Big Gains)
Power of compounding is real and is extremely important. If you understand it, you earn it; if not, you pay it. The rule for compounding is simple - the sooner you start investing, the more time your money has to grow.
Jigar Patel (NRI Investments and Taxation: A Small Guide for Big Gains)
For Long-Term Investors   Stock investments are ideal for reaping profits within a long timeframe. Stocks beat other investment vehicles (e.g. bonds) when measured in a period of ten years or more. Actually, the people who invested in the stock market during the Great Depression collected profits over the long-term.   If you will analyze the performance of all investment vehicles for the past 50 years and divide the results into ten-year periods, you'll see that stocks outclass other investment types in terms of total profits (considering that investors collected dividends and experienced capital compounding).
Zachary D. West (Stocks: Investing and Trading Stocks in the Market - A Beginner's Guide to the Basics of Stock Trading and Making Money in the Market)
Knowing your DUI attorney can eliminate the effect of the return of drunken Driving under the influence of alcohol is a serious offense. It has led to the destruction of countless innocent lives. Including in the United States against the wounded caused countless innocent people, their lives rotation indefinitely. It was carried out connected to the conclusion of households for damage. It has led to a community, the introduction of the unknown nature of the operation of the state, remain concerned with drunken diet. He is optimistic in September, then, that the federal government does not become a frivolous crime. With the repeal of the Step mode, the application of the laws of intoxication and the dishes are made to drunk drivers seem hard regularly. If it difficult to the crime of driving under the influence of alcohol or at least system is the next step in a reliable DUI lawyer, regardless of the guilt or innocence of their weight, protect yourself in the hope of such significant reductions in price, the not confirmed extremely high prices. Sam can throw a lot of money as well, you can get a driver's license, or without, it can be hard to take the prison up to one year. You can avoid because of their own and do not need to get drunk relaxed in the price. As a replacement for all these costs themselves, which is largely a good idea, the help of a DUI lawyer to win? These specialists understand the law and the conditions just mentioned above, compounds containing a labor judge and customer orientation DWI. DUI lawyers can be reduced to a constructive trust or even eliminate visibility into force. Opportunities robbery was accused of drunk again, and notes that you are responsible for the crimes. Even debt includes only the legal capacity and criminal DUI can trained your own navigation of these people to bring models. Sam, I think maybe just dedicated for his crimes while to select your mind and time, but not very simple scenario. A lawyer may reduce the value of the summary court to protect the effects, or even fines, suspensions and aspects of the prison, including research, replaced types of defenses and forage alcohol recovery. DUI lawyers said that before and look small, to see how drunken opportunities and shortcomings that can still influence the courtroom one behind the selling price. You can such a situation it is not possible lack of faith on the inside to create to take the manuscript. DUI lawyers can use our experience and work up shopping application laboratory errors that dominates lead for the detection of respiratory next acceptable display the current situation in the whatever. Unlike pilot’s proposals less effect on the mind, the entire route was to the training room, there are many cases a lot of experience of skilled DUI lawyer can help. All of these experts, the service experience of working in the right direction in order to continue to help customers move only in the courtroom and not too loose, not to keep the customers another law a hand. There are can be drunken very scary encounter billed offer. With the end of the transfer during this procedure of his or very familiar with the other side, while experts, the treatment should be fine. If you come into conflict with the mentioned at this point nation, they do poverty and a little assistance in criminal matters.
DrunkFire
IRA’s & 401k’s are awesome since they let the magic of compound interest do its thing over time. Think of compound interest as fine wine—it gets better as it ages. There are two types of IRA’s, Roth and Traditional. You can also have a Rollover IRA of each one, where you “rollover” your old 401k from an old employer. Both types, have a contribution limit of $5500 (2016 limit, $6500 if you’re 50+ years old). Here’s an example: If you start at the age of 25 with $5,500 and continue to contribute $5,500 every year until retirement age, your account could be worth a million or more assuming you have a hefty return every year (Google IRA calculator if you don’t believe me).
Jay Breezy (Thug Finance: Money Management Tips for the Thug in Us All)
you can simply buy wonderful companies at reasonable prices, and let those companies compound cash over long periods of time. Surprisingly, there aren’t all that many money managers who follow this strategy, even though it’s the one used by some of the world’s most successful investors. (Warren Buffett is the best-known.)
Pat Dorsey (The Little Book That Builds Wealth: The Knockout Formula for Finding Great Investments (Little Books. Big Profits 12))
I see professional advisors cold-call perfect strangers rather than do a call rotation for existing clients. I see advisors do prospecting seminars rather than a client advisory council or client appreciation event, and I see advisors run advertising campaigns rather than network with existing strategic allies and other professional influencers. “Spray and pray” marketing strategies are flawed on so many levels. Why, then, do so many advisors still attempt them? The reason for this is simple; nurturing existing relationships and other tried and true strategies can be boring and rarely results in instant gratification. Too many advisors want to find the next “new idea”, something with some “sizzle”, and, as a result, are continually searching for and dabbling with concepts that ultimately have minimal impact. It’s not unlike investing. How many times have you seen someone try to hit a home-run with a high-risk investment opportunity rather than stick with a methodical long-term approach? It’s not just money that compounds. As I’ve said before, discipline compounds, too. You have to be patient and let your efforts gather momentum. Too many advisors get themselves into the proverbial “Red Zone” and, rather than stick to the plan and see it through, they self-sabotage by abandoning the fundamentals and trying something new. Neglect also compounds. If we neglect our existing relationships it’s only a matter of time before they’ll be lured away and we’ll have to throw our own Hail Mary. Don’t deviate from your process. Identify the most fundamentally sound and proven trust-building activities, stick with them and tune out all the other noise. It’s much more effective to strengthen and nurture existing relationships over the long haul, rather than perpetually trying to start new ones. The prospecting treadmill is draining and you are building a business that is chaotic and unfocused. Relationships are proprietary and are a big part of the equity that you are building in your business.
Duncan MacPherson (The Advisor Playbook: Regain Liberation and Order in your Personal and Professional Life)
These investment assets can be businesses, real estate portfolios, and even other investment managers who are capable of compounding money at very high returns consistently after all fees charged.   Bad
David Schneider (The 80/20 Investor: How to Simplify Investing with a Powerful Principle to Achieve Superior Returns)
Benjamin Franklin provides us with an actual rather than a hypothetical case. When Franklin died in 1790, he left a gift of $5,000 to each of his two favorite cities, Boston and Philadelphia. He stipulated that the money was to be invested and could be paid out at two specific dates, the first 100 years and the second 200 years after the date of the gift. After 100 years, each city was allowed to withdraw $500,000 for public works projects. After 200 years, in 1991, they received the balance—which had compounded to approximately $20 million for each city. Franklin’s example teaches all of us, in a dramatic way, the power of compounding. As Franklin himself liked to describe the benefits of compounding, “Money makes money. And the money that money makes, makes money.
Burton G. Malkiel (The Elements of Investing: Easy Lessons for Every Investor)
The people who didn’t eat meat wondered how to get out of partaking in what was obviously the pièce de résistance of the Rex Yanakakis Christmas Eve Dinner. The animal-rights people cringed, not wanting to voice their objections for fear of pissing off Clea Sheridan Yanakakis, who was very generous to their causes with her husband’s money. The people who did eat meat tried to ignore the jittery noncarnivores surrounding them.
S.A. Bodeen (The Compound (The Compound, #1))
I hope that almost every adult will become an investor. When I became an investment counselor there were only 4 million shareholders in America, and now there are 48 million. The amount of money invested in American mutual funds is now 1,000 times as great as it was 55 years ago. Thrift, common sense, and wise asset allocation can produce excellent results in the long run. For example, if you begin at age 25 to invest $2,000 annually into your Individual Retirement Account where it can compound free of tax, and if you average a total return of 10 percent annually, you will have nearly a million dollars accumulated at age 65.
Roger C. Gibson (Asset Allocation: Balancing Financial Risk)
Nevertheless, it’s money that won’t be compounding in their accounts and building their net worth.
Taylor Larimore (The Bogleheads' Guide to Investing)
A skim of 2% to 3% of your investment returns each year, when compounded over 30 or 35 years is sufficient to cut your future life savings by more than half. That is like investing for 35 years with the help of a falsified “professional”, thinking you will retire with everything you deserve, and discovering when it is too late, that you are missing half or even two-thirds of what you should own. This is how to really farm humans.
Larry Elford (Farming Humans: Easy Money (Non Fiction Financial Murder Book 1))
SMART COUPLES TALK ABOUT MONEY ALL THE TIME The fact that most of us are not raised to talk about money is a real tragedy. Show me a couple who doesn’t talk about money and plan their finances together, and I will show you a couple headed for financial trouble—if they’re not already in it. When you work together on your finances, you can compound the results. When you don’t, the same can be said for the mistakes you will invariably make. In general, two heads are always better than one. No matter what your specific goal happens to be, having a partner working on it with you, providing encouragement and ideas, makes achieving that goal much easier. More specifically, the two of you will probably find it easier to save more money together than either of you can save separately. Which leads me to one of the basic points of this book. Couples Who Plan Together Have a Better Chance of Being Happy Together This, in a nutshell, is what this book is all about. By planning your finances together as a couple, you will significantly improve your chances of becoming wealthy and being happier together.
David Bach (Smart Couples Finish Rich, Revised and Updated: 9 Steps to Creating a Rich Future for You and Your Partner)
Habits are the compound interest of self-improvement. The same way that money multiplies through compound interest, the effects of your habits multiply as you repeat them.
James Clear (Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones)
Such were the circumstances under which the system of War Communism came into being and which prompted the government to proclaim the Soviet Republic a “military camp” in a decree of September 2, 1918. War Communism has been described as a compound of war emergency and socialist dogma. Its main features, in addition to the forcible food requisitions, were extreme centralization of economic life, the state’s effort to take both production and distribution into its own hands as far as possible, the compulsory mobilization of labor, and the attempt to abolish money in favor of direct exchange in kind.[317] It remained in force until 1921, when the regime proclaimed the New Economic Policy in order to revive the shattered economy. Under the NEP, forcible grain requisitions were replaced with a graduated tax in kind upon the peasant farmsteads, a money economy was restored, and private enterprise was legalized in agriculture, the service trades, and parts of light industry.
Robert C. Tucker (Stalin as Revolutionary: A Study in History and Personality, 1879-1929)
Just” 1% here, 1% there. Doesn’t sound like much, but compounded over time, it could be the difference between your money lasting your entire life or surviving on government or family assistance.
Anthony Robbins (MONEY Master the Game: 7 Simple Steps to Financial Freedom (Tony Robbins Financial Freedom))
The Rule of 72 is very simple: To determine how many years it will take an investment to double in value, simply divide 72 by the annual rate of return. For example, an investment that returns 8 percent doubles every 9 years (72/8 = 9). Similarly, an investment that returns 9 percent doubles every 8 years and one that returns 12 percent doubles every 6 years. On the surface that may not seem like such a big deal, until you realize that every time the money doubles, it becomes 4, then 8, then 16, and then 32 times your original investment. In fact, if you start with a single penny and double it every day, on the thirtieth day it compounds to $5,338,709.12. Are you starting to understand the power of compound interest? No wonder Einstein called it the greatest mathematical discovery of all time. Let’s assume a child is born today. For the next 65 years, she or her parents will deposit a certain amount into a stock mutual fund that pays an average annual return of 10 percent. How much do you think they need to deposit each day in order for her to have $1 million at age 65? Five dollars? Ten Dollars? In fact, a daily deposit of only 54 cents compounds to more than $1 million in 65 years. It really helps to start early.
Taylor Larimore (The Bogleheads' Guide to Investing)
More money will often not solve the problem. In fact, it may compound the problem.
Robert T. Kiyosaki (Rich Dad, Poor Dad: Financial Education Essentials)
The global cloud computing market is expected to reach $623.3 billion by 2023. According to cloud computing growth stats, the industry will grow at a Compound Annual Growth Rate (CAGR) of 18% during the forecast period. Global Infrastructure as a Service (IaaS) market is expected to grow with a Compound Annual Growth Rate (CAGR) of 22.9% over the forecast period from 2020-2026. Cloud computing holds great potential for organizations that choose to stay agile and empower rapid scaling-up through partnerships and access to flexible and accessible resources. With the cloud, IT is no longer a product, it is a service. The pay-as-you-go model holds the promise of saving money using the cloud. Efficiency and savings can be achieved, given, the attention is paid to cloud cost optimization. With inevitable rapid changes and challenges of an evolving digital landscape, recognizing the complexity of the organization, having a long-term focus and strategic objectives is vital.
Ludmila Morozova-Buss
Patience and discipline are the secrets to the compounding effect that yields the greatest successes in life.
Linsey Mills (Teach Your Child About Money Through Play: 110+ Games/Activities, Tips, and Resources to Teach Kids Financial Literacy at an Early Age)
RETIREMENT PITFALL #5: Taking a Loan from Your 401(k) This is an enormous no-no at any time in your career, but it’s a particularly disastrous mistake if you’re within five years of your retirement. Money removed from your 401(k) is money that cannot grow (with compound interest!), even if you are able to pay it back relatively quickly. The lost time equals lost growth, which you cannot afford to waste. In addition, 401(k) loans are considered withdrawals—with the attendant 10 percent early-withdrawal penalty plus income taxes—if you lose or leave your job before paying it back. Add the fact that most 401(k) plans will not allow you to contribute money to the plan while you have an outstanding loan, and it’s clear that this kind of loan is going to be extremely costly for you. If you need a loan, it’s far better to explore taking a home equity loan or borrowing from your insufferable brother than taking money from your own future. Yes, the interest on 401(k) loans tends to be low, and you are paying that interest to yourself. But the potential costs and risks are far too high, especially for those who are in their final years of work.
Emily Guy Birken (The 5 Years Before You Retire: Retirement Planning When You Need It the Most)
for the common emotional traps mentioned earlier, we offer the following tools for escape: Recency bias. Never assume today’s results predict tomorrow’s. It’s a changing world. Overconfidence. No one can consistently predict short-term movements in the market. This means you and/or the person investing your money. Loss aversion. Be a risk manager instead of a risk avoider. Believing you are avoiding risk can be a costly illusion. Paralysis by analysis. Every day you don’t invest is a day less you’ll have the power of compounding working for you. Put together an intelligent investment plan and get started. If you need help, seek out a good financial planner to assist you. The endowment effect. Just because you own it, or are a part of it, doesn’t automatically mean it’s worth more. Get an objective evaluation. Invest no more than 10 percent of your portfolio in your employer’s stock. Mental accounting. Remember that all money spends the same, regardless of where it comes from. Money already spent is a sunk cost and should play no part in making future decisions. Anchoring. Holding out until you get your price to sell an investment is playing a fool’s game. So is blindly assuming that your financial person is doing a great job without getting an objective reading of what’s really going on. Get a second opinion. Financial negligence. Take the time to learn the basics of sound investing. It’s really pretty simple stuff. Knowing it can make the difference between having a life of poverty or one of prosperity.
Taylor Larimore (The Bogleheads' Guide to Investing)
if you consistently practice the techniques recommended in this book, you will automatically side-step most of the emotional investment traps. Pay off your credit card and high-interest debts and stay out of debt. Formulate a simple, sound, asset allocation plan and stick to it. Systematically save and invest a part of each paycheck in accordance with the asset allocation plan. The earlier you start, the richer you become. Invest most or all of your money in index funds. Keep your costs of investing and taxes low. Don’t try to time the market. Tune out the noise, rebalance your portfolio when necessary, and stick with your plan. By doing those things, you will intelligently manage risk. You will buy low, sell high, and have the power of compounding working in your favor. You will slowly but systematically build wealth and a nest egg for a comfortable retirement. With a little luck, you will have more money than you dreamed you would ever have. These time-tested techniques have worked for millions of other people and they can work for you, too.
Taylor Larimore (The Bogleheads' Guide to Investing)
One classic warning sign that a bubble is coming is when an increasing amount of money is being borrowed to make debt service payments, which of course compounds the borrowers’ indebtedness.
Ray Dalio (A Template for Understanding Big Debt Crises)
Embracing the idea that financial goals made when you were a different person should be abandoned without mercy versus put on life support and dragged on can be a good strategy to minimize future regret. The quicker it’s done, the sooner you can get back to compounding.
Morgan Housel (The Psychology of Money)
Your fiduciary or a great tax expert can help you understand all the ways you can produce more net growth in your Freedom Fund so that your compounding process is maximized. Remember, this can save you years or even decades!
Anthony Robbins (MONEY Master the Game: 7 Simple Steps to Financial Freedom (Tony Robbins Financial Freedom))
His skill is investing, but his secret is time. That’s how compounding works.
Morgan Housel (The Psychology of Money)
highest returns tend to be one-off hits that can’t be repeated. It’s about earning pretty good returns that you can stick with and which can be repeated for the longest period of time. That’s when compounding runs wild.
Morgan Housel (The Psychology of Money)
Growth is driven by compounding, which always takes time. Destruction is driven by single points of failure, which can happen in seconds, and loss of confidence
Morgan Housel (The Psychology of Money: Timeless lessons on wealth, greed, and happiness)
Recent U.S. foreign policy has done more than simply allow these dangerous forces to multiply and to gain control of an increasingly unstable Middle East. It has also actively compounded the problem through the disastrous Iran nuclear deal, formally known as the Joint Comprehensive Plan of Action.53 The JCPOA, announced in 2015, came about after years of negotiations between Iran and the United States, the United Kingdom, France, Russia, China, and Germany, the so-called P5+1.54 President Obama entered office wanting to negotiate with Iran, making clear he was willing to do whatever it took. As soon as the Obama administration sent senior advisor Valerie Jarrett to negotiate through back channels, Iran knew how desperate the Obama administration was. The Iranians sensed this desperation, which allowed them to get everything they wanted while giving up virtually nothing in return. The deal completely capitulates to Iran, providing very broad relief from existing sanctions in coming years as well as the ability to recover billions of dollars’ worth of hard currency presently frozen abroad in foreign banks.55 Frozen Iranian assets based in the United States, including oil, petrochemical, and investment companies, will also be lifted.56 Estimates suggest that loosening sanctions will provide Iran up to $150 billion in assets currently tied up.57 That’s billions to terrorists around the world who hate America. That’s billions to President Assad in Syria to kill his own citizens and use chemical weapons on children. That’s billions to Hamas to launch rockets toward innocent Israeli civilians. That’s billions to Hezbollah. That’s billions in payments to Russia for weapons that violate international sanctions, money that Russia can, in violation of international law, use to attack its neighbors. What has Iran promised the United States and the world in return? Iran has agreed to relax its uranium enrichment efforts and repurpose some of its nuclear facilities for peaceful operations.58 Yet there is considerable fear that Iran will leverage the removal of trade restrictions and the $150 billion it is receiving to build nuclear weapons and to support terrorism worldwide.
Jay Sekulow (Unholy Alliance: The Agenda Iran, Russia, and Jihadists Share for Conquering the World)
in one area of your life you’d like to change and improve (e.g., money, nutrition, fitness, recognizing others, parenting… any area).
Darren Hardy (The Compound Effect)
Right this moment: Pick an area of your life where you most want to be successful. Do you want more money in the bank? A trimmer waistline? The strength to compete in an Iron Man event? A better relationship with your spouse or kids? Picture where you are in that area, right now. Now picture where you want to be: richer, thinner, happier, you name it. The first step toward change is awareness. If you want to get from where you are to where you want to be, you have to start by becoming aware of the choices that lead you away from your desired destination. Become very conscious of every choice you make today so you can begin to make smarter choices moving forward. To help you
Darren Hardy (The Compound Effect)
This tracking exercise changed my awareness of how I related to my money. It worked so well, in fact, that I’ve used it many times to change other behaviors. Tracking is my go-to transformation model for everything that ails me. Over the years I’ve tracked what I eat and drink, how much I exercise, how much time I spend improving a skill, my number of sales calls, even the improvement of my relationships with family, friends, or my spouse. The results have been no less profound than my money-tracking wake-up call. In buying this book, you’re basically paying
Darren Hardy (The Compound Effect)
The ideal business is one that earns very high returns on capital and that keeps using lots of capital at those high returns. That becomes a compounding machine,” Buffett said. “So if you had your choice, if you could put a hundred million dollars into a business that earns twenty percent on that capital—twenty million—ideally, it would be able to earn twenty percent on a hundred twenty million the following year and on a hundred forty-four million the following year and so on. You could keep redeploying capital at [those] same returns over time. But there are very, very, very few businesses like that...we can move that money around from those businesses to buy more businesses.
Alice Schroeder (The Snowball: Warren Buffett and the Business of Life)
The first rule of compounding is to never interrupt it unnecessarily.
Morgan Housel (The Psychology of Money: Timeless lessons on wealth, greed, and happiness)
At the same time, she saw on the streets and subways of New York a depth of poverty unlike anything she'd ever witnessed in Europe, and realized that unemployment or even a poorly paid job in the US could lead to abject homelessness, hunger, and desperation. Compounding Partanen's anxiety was the fact that, while poverty was often visible, wealth frequently was not; she eventually realized that many of the people whom she thought of as her peers were not living on their earnings, but on inheritances or family support. Worst of all, it really did seem difficult to earn enough to own a home, send her kids to college, or have reliable health-care insurance. Paradoxically, as her insecurities added up, she found herself wanting to spend more money, rather than less. 'It was striking to me that I, who had grown up in a Nordic country and had not felt that before, got caught up in it quite quickly after moving to America. I felt like I should be consuming more,' Partanen said, 'You want to buy more things that will make you feel like you're making it, and like you are safe.
J.B. MacKinnon (The Day the World Stops Shopping: How Ending Consumerism Saves the Environment and Ourselves)
Luca Pacioli’s Rule of 72. Here’s how it works. If you know the return you’re earning on an investment (say, 6 percent per year), divide 72 by that number (72 / 6 = 12). This gives you the number of years it’ll take for your money to double. If I invest $1,000 with a return of 6 percent a year, it’ll compound into $2,000 in 12 years
Kristy Shen (Quit Like a Millionaire: No Gimmicks, Luck, or Trust Fund Required)
The mantra is simple: take the money you save on fees and reinvest it for compounded growth. This strategy is another fast lane to freedom.
Anthony Robbins (MONEY Master the Game: 7 Simple Steps to Financial Freedom (Tony Robbins Financial Freedom))
A gap between what could happen in the future and what you need to happen in the future in order to do well is what gives you endurance, and endurance is what makes compounding magic over time.
Morgan Housel (The Psychology of Money)
3. Growth is like interest: It compounds over time. A hustler lives from small win to small win. Tiny wins—buying things at garage sales and selling them on eBay—never compound. You might work really hard and make extra money, but it’s unlikely you’ll become a millionaire. If you follow my plan, results will stack extremely quickly. They might seem insignificant at first, but, after a year, you will have a hard-charging income stream that continues to grow for years to come. One of my favorite books is called The Slight Edge by Jeff Olson. In it, he argues that extraordinary results do not come from big wins—they come from incremental steps forward that compound over time. For instance, you don’t get fat by overeating one time; you get fat when you consistently overeat. The same is true with wealth. You don’t get rich with one big sale. You get rich by doing the right thing long enough for it to compound.
Ryan Daniel Moran (12 Months to $1 Million: How to Pick a Winning Product, Build a Real Business, and Become a Seven-Figure Entrepreneur)
Habits are the compound interest of self-improvement. The same way that money multiplies through compound interest, the effects of your habits multiply as you repeat them. They seem to make little difference on any given day and yet the impact they deliver over the months and years can be enormous.
James Clear (Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones)
But good investing isn’t necessarily about earning the highest returns, because the highest returns tend to be one-off hits that can’t be repeated. It’s about earning pretty good returns that you can stick with and which can be repeated for the longest period of time. That’s when compounding runs wild.
Morgan Housel (The Psychology of Money: Timeless lessons on wealth, greed, and happiness)
Those who knew Read were baffled. Where did he get all that money? It turned out there was no secret. There was no lottery win and no inheritance. Read saved what little he could and invested it in blue chip stocks. Then he waited, for decades on end, as tiny savings compounded into more than $8 million.
Morgan Housel (The Psychology of Money: Timeless lessons on wealth, greed, and happiness)
Nothing testified more to the evanescence of position and wealth in Beverly Hills than its architecture. There was money in abundance to put up the settings of the grand life. But land—the one true mark of stable grandeur—was not to be had. The town was an industrial compound of the temporarily well-paid.
Herman Wouk (Youngblood Hawke)
Charlie Munger says the first rule of compounding is to never interrupt it unnecessarily.
Morgan Housel (The Psychology of Money: Timeless lessons on wealth, greed, and happiness)
Worship room for error. A gap between what could happen in the future and what you need to happen in the future in order to do well is what gives you endurance, and endurance is what makes compounding magic over time. Room for error often looks like a conservative hedge, but if it keeps you in the game it can pay for itself many times over.
Morgan Housel (The Psychology of Money: Timeless lessons on wealth, greed, and happiness)
A modest rate-of-return can accumulate a fortune over time. You don’t need to beat the market, do over-leveraging, or pick the best stock to be rich. You just need to earn a decent rate-of-return and let your money compound overtime.
Naved Abdali
Jim Simons, head of the hedge fund Renaissance Technologies, has compounded money at 66% annually since 1988. No one comes close to this record. As we just saw, Buffett has compounded at roughly 22% annually, a third as much. Simons’ net worth, as I write, is $21 billion. He is—and I know how ridiculous this sounds given the numbers we’re dealing with—75% less rich than Buffett. Why the difference, if Simons is such a better investor? Because Simons did not find his investment stride until he was 50 years old. He’s had less than half as many years to compound as Buffett. If James Simons had earned his 66% annual returns for the 70-year span Buffett has built his wealth he would be worth—please hold your breath—sixty-three quintillion nine hundred quadrillion seven hundred eighty-one trillion seven hundred eighty billion seven hundred forty-eight million one hundred sixty thousand dollars.
Morgan Housel (The Psychology of Money: Timeless lessons on wealth, greed, and happiness)
The big takeaway from ice ages is that you don't need tremendous force to create tremendous results. If something compounds-if a little growth serves as the fuel for future growth-a small starting base can lead to results so extraordinary they seem to defy logic. It can be so logic-defying that you underestimate what's possible, where growth comes from, and what it can lead to.
Morgan Housel (The Psychology of Money)
Growth is driven by compounding, which always takes time. Destruction is driven by single points of failure, which can happen in seconds, and loss of confidence, which can happen in an instant. It’s easier to create a narrative around pessimism because the story pieces tend to be fresher and more recent. Optimistic narratives require looking at a long stretch of history and developments, which people tend to forget and take more effort to piece together.
Morgan Housel (The Psychology of Money: Timeless lessons on wealth, greed, and happiness)
There are eight areas of life for which you should make goals. When you focus on all these areas and build up goals over the year, this has a compound effect on your whole life. If you could improve in all areas of your life, even just little by little, month on month, by the end of the year your life would look drastically different. The areas are: • Spiritual (your connection to the Universe/God … whatever or whomever) • Emotional (your relationship to your closest family members/partner/children) • Physical (your physical health) • Mental (your learning and mental growth) • Social (your friendships and community) • Charitable (how you give to others outside of yourself) • Vocational (what you do for a living) •    Financial (your relationship to money and how you build your wealth). Set yourself 12-month goals in each of the areas.
Noor Hibbert (Just F*cking Do It: Stop Playing Small. Transform Your Life.)