The thing that people like about investing is the compound interest.
In fact compound interest, the mechanism itself can make small money into big money because of the snowball effect where last years interest is cumulative and the new interest is calculated on the new higher balance meaning the new interest is higher, making the following years interest even higher still and so on.
Many investors are a little confused about investment and typically turn immediately to the stock market or real estate but investment is far from the convoluted institutional enigmas that we encounter for example in the stock market.
Realistically an investment is simply buying something of anything, with the express purpose of profiting from the resale or even collecting an income from the purchase while owning it.
When we look at investment this way, we could say anything is an investment.
For example let us say it is a warm day and you decide to invest 10 dollars in 10 cans of ice cold soda.
You put on a cheerful demeanor and head to a close by work site where you sell the cans to over heated work men.
But you charge $1.
50 for the cans you paid $1.
00 for.
That is a 50% mark up and you sold out in 6 minutes.
The whole exercise took you just 20 minutes.
Sure you only made $5 bucks, but that is not the important thing.
The important thing is the numbers and any investor would be envious of a 50% return in 20 minutes.
So my point is this.
Doing nothing is what investors do.
They take pride in the fact they make a 20% or 30% return each year and all they do is buy and sell assets and wait.
Doing nothing is great, but you can increase your compounding and income dramatically if you apply compounding in a hands on way.
$100 dollars turns into a million dollars if you compound it 14 times...
by 100% You getting some ideas? Me too!