The accumulation of financial gains over a certain period of time. This is a very good strategy to make a lot of money in relatively a short period
- You invest some money, you gain, you reinvest the gains …. Etc.
- This is like the snow ball effect
- The best thing about compounding is that it doesn’t have to be a lot at all
The only 2 factors in that are:
1- How much of gain in 1 time periods?
2- How many time periods do you have?
For example; if you improve by 1% a day, you will be twice as good in 70 days :)