Part 3 – Compound Growth
What does Compound Growth look like for You?
As noted in the previous 2 posts, reinvesting dividends, earnings and interest can produce a Compounding effect in building financial wealth that looks something like this:
This is a hypothetical example and is not representative of any specific situation. Your results will vary. The hypothetical rates of return used do not reflect the deduction of fees and charges inherent to investing.
In this illustration, the graph shows compounding of both Contributions and Earnings. Note which of the two is the biggest contributor to total wealth. Right – the Earnings. That’s the reward for the investment.
Are you benefitting from long-term compounding of money saved and invested? I hope so.
Do yourself this favor: reflect on the areas of your life where you are investing the most effort, time, dedication and sacrifice. Are one or more of those producing a ‘compounding growth’ curve that looks like the graph above?
Is it an area of your life where the growth would mean the most?
Where are you investing efforts, patience and dedication that are producing recognizable or unexpected dividends?
- Parenting?
- Service within your community or your church?
- Learning something new?
- Giving love?
- Accepting love?
How are you accumulating Dividends? Where is your process of investing, enduring and compounding enabling you to develop Mastery? Do you feel patient with the process?
I hope you will do this:
- Save and invest
- Invest in your family
- Invest in your church
- Invest in your community
- Invest in the people you love
- Invest in yourself, your talents, your happiness
- Reinvest the dividends and experience compound growth of Wealth you won’t outlive
I’m learning to recognize the dividends I am receiving from my efforts. I hope you are, too. Recognize and give yourself credit for the mastery you are achieving. See if you can identify compounding growth and an accumulation of wealth – not just in your investments, but also in your relationships, your abilities, and your capacity to do good.
It’s there. You will see it.