The effect of compound interest: how to become a millionaire without getting off the couch (almost)

Do you dream of becoming a millionaire? Of course, you do! Who doesn't want to live carefree, sipping cocktails on the ocean shore? But it turns out, you just need to make 200 profitable deals. Just that! Well, maybe a bit more if your hands aren't in the right place.

But let's talk seriously – about compound interest. This cunning mathematical trick works like this: you earn on one deal, and then reinvest what you earned. And so on, like a hamster on a wheel. Sounds easy? Don't be fooled.

Compound interest: magic or deception?

Let's say you started with $1000. Your goal is to double your money on each deal. It seems like just 10 doublings and you are already a millionaire. True, it sounds so simple that one might think it's a script from a financial pyramid brochure.

In reality, the effect of compound interest works slowly but surely. It's like trying to boil an egg in cold water – sooner or later it will boil if you are patient enough (and if you actually know how to boil eggs).

The magic of 200 deals

Let's break down the mythical '200 deals'. Suppose you earn 1% on each deal. After the first deal, you will have $1010. After the second – $1020.10. After 200 deals, you suddenly become... a multimillionaire! Just kidding. In reality, after 200 deals, your capital will grow exponentially, but only if you never lose.

And now imagine that one deal fails. That's it, goodbye to your dreams of the ocean and cocktails!

Why doesn't this work?

1. Emotions. Compound interest works perfectly... only on paper. But you are a human, not a calculator. Every failure throws you off track, and every success pushes you to take risks.


2. The market does not forgive mistakes. Yes, there may be people who consistently earn 1% on each deal. But they are probably already being studied in laboratories.


3. Time. If you earn the same 1% per month, it will take you about 40 years to reach a million. Congratulations, you are a millionaire... at retirement age!



Result: don't wait for a miracle

Compound interest is a working thing, but only if you are smart, patient, and willing to take risks. Also, if you have starting capital and no desire to spend money on food and rent.

So, do you want to become a millionaire? Well, then go ahead: study the market, calculate interest, and prepare for a nervous tremor. And if this isn't for you – just find a good job, save money, and enjoy life. After all, as they say, a bird in the hand is worth two in the bush.

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