Last Updated on May 1, 2022 by Chin Yi Xuan
Which option would you choose?
Starting the year with RM100,000 (assuming you can’t use it for further investments), or getting RM0.01 that’ll double itself for every week for the rest of 2021?
The person that chooses the latter option will end up with RM22,517,998,136,852.50 by the end of the year (52 weeks) – thanks to the power of compounding.
In hindsight, making a choice doesn’t seem hard at all – and it is such irony that this is an easy decision to make.
Well, here’s the thing – you may have heard various versions of the story above about the power of compounding, but they are barely a true reflection of real-life situation:
- WHAT IF you were not told about the outcome ahead of time?
p - WHAT IF you’d need to put in consistent time and effort in growing the 1 cent, BUT you are not guaranteed the outcome?
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- WHAT IF you’d need to change your money habits and routine for something that might not happen?
Suddenly, making a decision doesn’t seem to be that straightforward anymore.
Not everyone can live with uncertainties. Not everyone is willing to take action. Not everyone is far-sighted enough to change for the better.
Knowledge without courage = 0
Knowledge without action = 0
Knowledge without foresight = 0
When it comes to wealth building, knowledge is common. Courage is precious. Action is rare. Foresight is invaluable.
Here’s to a new year filled with possibility.
