Suck On These Winnings, Powerball

By | January 13, 2016 Leave a Comment

Double This Penny 38 times

It's a fascinating social experiment to play with people who are bad at math...

Sit the average grade-schooler down, and ask him this question:

"If I were to offer you a penny today, two pennies tomorrow, four pennies the next day, and so on, doubling the amount every day for the next thirty days, or $1 million dollars right now, today, which one would you take?"

Invariably, the choice the unwitting kid will make is for the $1 million today. Easy money, right?

Most people, when given the choice, will take the huge chunk of money and run with it, not giving it a second thought. That's because humans, especially the generation of today, are so adverse to waiting... they're used to having everything handed to them. Knowledge, entertainment, and gratification is available at your fingertips, why would you falter to reach out and take it?

Well, here's the big reason.

I've outlined this neat little chart which gives the cumulative earnings of adding up all those pennies and dollars over the course of 30 days.

As you can see, on day 27, the wise, patient fifth-grader is handed just over $600,000, for a cumulative amount of $1.42 million.

Fulfilling the rest of the deal, the 30th day gives a total amount over $10.737 million.

By day 38, if you've been patient, you've cumulatively surpassed the payout of the largest Powerball Lottery pool in U.S. history--and won $2.68 billion.

Such is the power of small, successive winnings over time, and of compound interest.

That's what I try to teach people to make here at the Village... small, successive, repetitive winnings which add up over time. And I OFFER IT FOR FREE.

I teach you how to safely invest in the markets, using stocks and options, to net 20% or more over the course of any given year. These kinds of returns spank the general market like a disobedient child.

This is fascinating stuff....

A Pitiful 1.2% Per Month For 10 Years Equals..... HOW MUCH???

Let's say you've been wise enough to save up $3,000, so that you can start investing, and give the strategies I talk about a little bit of testing.

My strategies usually bring in about 1.2% per month, give or take a small amount, adjusting for the general volatility of the market--sometimes, much, much more, but generally, not any less.

The first month, taking my advice you make just $36. Sure, it doesn't seem like much. But reinvested in another opportunity, the next month, you'd make $36.43.

By Month 12, you're making an additional $41 and some change. By the end of year three, that has become $54, and by the end of year 10, it's $148 in income per month... and it only "costs" you 5 minutes a month to execute. That's an "hourly" wage of $1786 per hour. Your $3,000 became $12,554 over ten years--which is the amount of time I believe it should take the average person to become financially independent.

This is how you create wealth: little by little over time, using safe strategies where it's almost impossible to lose money. I've written several articles in the past, demonstrating how this is not a dream--but a reality. Read about a few of them here, here, here, and here. 

And get a recap of all my 2015 trades here.

Heck, while you're at it, why not just read everything I have?

How is this going to make you financially free? Well, you don't just slap down $3,000 every month and sit and wait... you add to the investment fund every month, and invest that money as well.

By taking that initial $3,000, and committing to add just $400 a month into your investment account (check this article or my section on personal finance if you need help finding the money to do this), and investing those same funds, you'll have $118,710 in wealth over 10 years. The more you commit to your investment fund each month, the quicker your wealth grows.

It's Just Simple Math

Let me reiterate: this isn't fantasy. It's just simple math. Everyone out there buying lottery tickets, hoping to win it big, is going to be disappointed. But we won't be.

Investing is a game where more than one person can win the Big Powerball in the long run. Are you going to be one of them?

If you want to be, check out what I've written on the subject of using options to pad your investment returns. This is all found in my Short-Term Trading and Speculation section.

Let's do this.

Live long and invest,

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