What makes a person powerful?
What creates power in your own life?
These were the first two questions of Chapter 2, and sadly, I believe the wealth is power…although it shouldn’t be. If we look into the deeply entrenched roots of Thailand, everything revolves around money and power. The super wealthy get away with killing, literally, and they can just walk up and down the streets like nothing ever happened.
If we can go back to the ages when human beings and sabretooth tigers coexisted, how could we survive against these predators whose canines were longer than our femur? We were ferocious predators and we can get through some of the coldest winters EVER in human history. But gradually we’ve been able to utilize and extrapolate.
We’ve recognized pattern recognition. According to a lot of articles online, we can predict the world population for the next several years.
Now let’s move on to why this pertains to money and achieving financial success.
“Once you recognize the patterns in the financial markets, you can adapt to them, utilize them, and profit from them.” – Tony Robbins
The most powerful way to build wealth is by COMPOUNDING!
“Let’s illustrate the tremendous impact of compounding with just one simple but mind-blowing example. Two friends, Joe and Bob, decide to invest $300 a month. Joe gets started at age 19, keeps going for eight years, and then stops adding to this pot at age 27. In all, he’s saved a total of $28,800.
Joe’s money then compounds at a rate of 10% a year (which is roughly the historic return of the US stock market over the last century). By the time he retires at 65, how much does he have? The answer: $1,863,287. In other words, that modest investment of $28,800 has grown to nearly two million bucks! Pretty stunning, huh?
His friend Bob gets off to a slower start. He begins investing exactly the same amount—$300 a month—but doesn’t get started until age 27. Still, he’s a disciplined guy, and he keeps investing $300 every month until he’s 65—a period of 39 years. His money also compounds at 10% a year. The result? When he retires at 65, he’s sitting on a nest egg of $1,589,733. Let’s think about this for a moment. Bob invested a total of $140,000, almost five times more than the $28,800 that Joe invested. Yet Joe has ended up with an extra $273,554. That’s right: Joe ends up richer than Bob, despite the fact that he never invested a dime after the age of 27!
What explains Joe’s incredible success? Simple. By starting earlier, the compound interest he earns on his investment adds more value to his account than he could ever add on his own. By the time he reaches age 53, the compound interest on his account adds over $60,000 per year to his balance. By the time he’s 60, his account is growing by more than $100,000 per year! All without adding another dime. Bob’s total return on the money he invested is 1,032%, whereas Joe’s return is a spectacular 6,370%.
Now let’s imagine for a moment that Joe didn’t stop investing at age 27. Instead, like Bob, he kept adding $300 a month until he was 65. The result: he ends up with a nest egg of $3,453,020! In other words, he has $1.86 million more than Bob because he started investing 8 years earlier.”
Excerpt From: Tony Robbins. “Unshakeable.” iBooks. https://itunes.apple.com/us/book/unshakeable/id1146849403?mt=11
Here’s my problem. Tony doesn’t specific that if this is a mutual fund or index fund though? This all sounds so enticing, but does this work in every country? Maybe the answer will lie somewhere in this book, or maybe it won’t. This is what I’m trying to breakdown.