Why Einstein told Compound Effect is the 8th wonder of the world ???
Many of us doesn't know what is the compound effect. We may heard the terms like simple interest and compound interest while getting loans from bank or solving any problems. Have you ever try to understand what it is?? and how it works?? In this article we are going to see about the compound effect which is the most powerful effect in the world. Even legendary scientist Albert Einstein claimed this compound effect as 8th wonder of the world. So what it is?? why he called like that?? how it will help in our daily life??? Lets discuss about this.......
So, what is the compound effect????
So, what is the compound effect????
Before going to the real time application, first of all we should know what is the compound effect. Let me explain this effect with the help of a small story.....
Once a king was addicted to the mind game chess. He loved the game more than anything. One day he decided to honour the person who created this game. The king thought like to give diamonds, pearls, gold, emeralds, lot of money, even he is ready to give a small portion of his kingdom to the inventor. The inventor came and stood in front of the king. The ruler praised him to the core and asked the inventor that what he needs??? He expected some big thing from him. But he simply told "honourable king i need rice equal to the amount of boxes in the chess board. For every boxes i need rice double than the previous box". King became confused why this guy asking like a mad, rather than asking precious stones he is simply asking the rice. Again and again the king asked him and confirmed his statement. Finally he order his soldier to give the amount of rice what the inventor asked. After few days the soldier return back to the king and told "he is not a fool as we thought, he is the wisest person in the world. We dont have enough rice to give him. Even the entire world wont be sufficient to offer the amount of rice what he asked".
Yes, the game inventor was the wisest man. He asked like for every box the amount of rice should get double. It means, the chess board contains 64 boxes. If we keep 1 rice at 1st box, obviously we need to keep 2 rice at 2nd box and 4 rice at 3rd box and the calculation will goes on like this........
It wont be a problem until 17th box. As per the compound effect, the inventor will get 65536 rice in 17th box. In 18th box he will get get more than 1 lakh rice. At the end of 64th box he will get 9223372036854780000 rice which is equal to 461 billion metric tons. It is equal to $300 trillion US Dollars. This effect the multiplying so called as Compound Effect.
Even the formation of snow balls also based on this, imagine if you are dropping a small stone from the top of a snow hill. The stone will get roll over the snow. For every round the stone will get a layer of snow. The amount of snow sticking to the stone will increase for every round as the circumference increasing. Finally the stone will get maximum diameter with the help of this effect when it reached the ground.
The principle they are applying in bank for compound interest. First year for 1000 dollars you will get $100, that is 10% as interest. If we didnt take that amount from account. Next year we will get $110 as interest for the balance $1100. The amount will get multiplying proportional to the years. This effect is a very slow mode. Initially we used to receive small increments. But whenever it reached a "tipping point" the development will be humongous. Thats why Albert Einstein told the compound effect as 8th wonder.
Warren Buffet's career revenue
Warren Buffet, we know he is one of the top 3 richest person in the world. Did you believe he earned his 80% of total wealth after crossing 50 only. Below there is a graph explaining how much he earned based on his age. He is the best living example for Compound Effect.
But for making the compound effect successful in our life it needs lot of patience and waiting. Before starting invest in any field like land, gold, share etc., just think which one will multiply your efforts. Not only in investing you can use this any field even in blogging and affiliate marketing too. Only thing you need to do is 3W's. Waiting, Working and a bit Wise.
All the above concept explained based on the below book "The Compound Effect" written by Darren Hardy. This book contains many things about the effect apart from the above post.
Once a king was addicted to the mind game chess. He loved the game more than anything. One day he decided to honour the person who created this game. The king thought like to give diamonds, pearls, gold, emeralds, lot of money, even he is ready to give a small portion of his kingdom to the inventor. The inventor came and stood in front of the king. The ruler praised him to the core and asked the inventor that what he needs??? He expected some big thing from him. But he simply told "honourable king i need rice equal to the amount of boxes in the chess board. For every boxes i need rice double than the previous box". King became confused why this guy asking like a mad, rather than asking precious stones he is simply asking the rice. Again and again the king asked him and confirmed his statement. Finally he order his soldier to give the amount of rice what the inventor asked. After few days the soldier return back to the king and told "he is not a fool as we thought, he is the wisest person in the world. We dont have enough rice to give him. Even the entire world wont be sufficient to offer the amount of rice what he asked".
Yes, the game inventor was the wisest man. He asked like for every box the amount of rice should get double. It means, the chess board contains 64 boxes. If we keep 1 rice at 1st box, obviously we need to keep 2 rice at 2nd box and 4 rice at 3rd box and the calculation will goes on like this........
It wont be a problem until 17th box. As per the compound effect, the inventor will get 65536 rice in 17th box. In 18th box he will get get more than 1 lakh rice. At the end of 64th box he will get 9223372036854780000 rice which is equal to 461 billion metric tons. It is equal to $300 trillion US Dollars. This effect the multiplying so called as Compound Effect.
Even the formation of snow balls also based on this, imagine if you are dropping a small stone from the top of a snow hill. The stone will get roll over the snow. For every round the stone will get a layer of snow. The amount of snow sticking to the stone will increase for every round as the circumference increasing. Finally the stone will get maximum diameter with the help of this effect when it reached the ground.
The principle they are applying in bank for compound interest. First year for 1000 dollars you will get $100, that is 10% as interest. If we didnt take that amount from account. Next year we will get $110 as interest for the balance $1100. The amount will get multiplying proportional to the years. This effect is a very slow mode. Initially we used to receive small increments. But whenever it reached a "tipping point" the development will be humongous. Thats why Albert Einstein told the compound effect as 8th wonder.
Warren Buffet's career revenue
Warren Buffet, we know he is one of the top 3 richest person in the world. Did you believe he earned his 80% of total wealth after crossing 50 only. Below there is a graph explaining how much he earned based on his age. He is the best living example for Compound Effect.
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| Compound Effect in the life of Warren Buffet |
But for making the compound effect successful in our life it needs lot of patience and waiting. Before starting invest in any field like land, gold, share etc., just think which one will multiply your efforts. Not only in investing you can use this any field even in blogging and affiliate marketing too. Only thing you need to do is 3W's. Waiting, Working and a bit Wise.
All the above concept explained based on the below book "The Compound Effect" written by Darren Hardy. This book contains many things about the effect apart from the above post.
 |
| http://fkrt.it/jfqNT4uuuN |
Click the below link to buy this book via online
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