If you have ever considered the miracle of compounding, you would know that interest upon interest can pay off big time. One of the simplest ways to invest money is to double it for higher and higher transactions. With just $500 dollars you can turn it into $1,000,000 in exactly 11 simple steps. Lets look at how this can be accomplished.
The above 11 steps show how money can compound when you double it at each step. Lets run through an example and see how this can be accomplished using higher and higher levels of equity.
Doubling your capital is the same as saying you made a 100% return. You spend $500 but you got back $1000 How can this be accomplished, legally and with as little risk as possible. Because if you can do it once, you can do it at all the other levels because it is the percentage proportion that matters and not the level at which you are compounding.
Lets say for example, we have $500 and we borrow another $1000 on our credit card which we will repay before the interest free period is up. The borrowed funds cost us nothing because of this. We look around for an investment object that is sorely under priced. An investment object can be anything, lets say we find a car the person down the street is selling because they bought a brand new car and don’t want the other car. They don’t care too much if they get full price, they just want to sell it. You offer them $1500 and they gladly accept. But the car is easily worth $2000
You put it in the classifieds for $2300 and somebody comes along and offers you the $2000 you were looking for in the first place. Tell me this…how long do you think such a transaction would take? A year? 6 months? I am sure you could achieve your first compounding goal within a few weeks. You return the borrowed $1000 to your credit card and you are left with $1000 You have doubled your money for the first time and it only took a few weeks. Later, as your capital grows, you get into real estate and raw land, you can look at luxury yachts and precious stones, in fact anything that matches your level of seed capital and is priced below intrinsic value.