### Step Four: Put the Magic of Compounding to Work for YOU.

#### How to Get 300% Return on YOUR Investment.

If you can save**$100 per year**(that is only $2 per week) and put it into an account earning

**10% per year**and leave it alone for

**25 years**.

You have saved $2,500 in direct savings which has earned interest. The 10% Interest is not just 10% on the total savings but you earn 10% Interest per Year on the original deposit **PLUS** the Interest.

If you only earned Interest on the annual deposit, you would have $2,750 after 25 years but with Compound Interest you will have **$10,818.18**. This is a **profit of $8,318.18** or an average of $332.73 per year for the 25 years.

This is **over 300%** Return on YOUR Investment of $100 per Year.

This is how the Banks make **money** from the Credit Cards, Loans, Mortgages, Overdraft and Business Loans. Can you think of any good reason why you shouldn't use this **Magic** for yourself?

Imagine what would happen if you saved $1,000 per year. Or what about $100 per week ($5,200 per year). Yes, it is roughly $10,818.18 times 10, 52 or any other multiple of $100. When you consider that every year you **delay** getting started **is costing you** in lost opportunity, and hard cash in later years, what is stopping you?

**Imagine** now what will happen when you generate **other sources** of income and can divert it into your investments. Imagine what will happen when you find investments which deliver **25% to 500%** and more (yes they do exist). Do you now understand how you can **become Wealthy** on your income? Do you think that it is worth your time to restructure your personal finances so that you free up some cash for saving/investment purposes?

Using the **Magic of Compounding**, you can calculate the time it will take for your investment to double is size. It is called the **Rule of 72**. If you divide 72 by the percentage return the result is the number of years to doubling. Assuming a 10% return the answer would be 72 / 10 = 7.2 years. Assuming 50% return the answer would be 72 / 50 = 1.4 years. The **Rule of 115** allows you to calculate how long it will take to Triple your investment. Assuming a 10% return the number of years required to triple your investment would be 115 / 10 = 11.5 Years. Assuming a 50% return the time taken to triple your investment would be 115 / 50 = 2.3 Years.