Etini
Valued Contributor
Compounding as it relates to finance is a system whereby a person re-invests the profit he or she has made from a business. Every person that commits any amount of money within a certain period expects profit. Some people have plans for their profits even before it is set.
But with compounding, you delay gratification. You use discipline to forgot what you would have enjoyed from that profit to expand your investment. What this does to a person's finances is that it builds oceanic wealth. And in a matter of time, your business or investment portfolio would be so large.
With compounding, after a period of time, your investment would be so huge that when once returns come in, it would be so huge. This is one secret of wealthy people.
But with compounding, you delay gratification. You use discipline to forgot what you would have enjoyed from that profit to expand your investment. What this does to a person's finances is that it builds oceanic wealth. And in a matter of time, your business or investment portfolio would be so large.
With compounding, after a period of time, your investment would be so huge that when once returns come in, it would be so huge. This is one secret of wealthy people.