$20 dollars may not sound like much but it could potentially become one million dollars in a very short amount of time. In the world of investment and compounding, even a humble $20 bill can be a seed capital account that will grow to gigantic proportions. When your money earns interest upon interest, you can see some really magical things starting to happen.
Speed of return is just as important. Lets take our $20 bill for example, can you think of ways to turn that $20 into $40? If you could double your result every time for 17 times, you would have over $1.3 million dollars by the time you are at your 17th transaction.
Have you thought about how to double your $20 dollars? It would actually be remarkably easy and I don't think there would be a reader considering this, that wouldn't have a few ideas about how to double a $20 dollar note into $40. But how would you double $650,000 which is the 16th transaction or step?
If you were able to double $20 by investing it. In other words, buying something for $20 and getting back $40 when you re-sell it, then you can do it at higher levels too. The main difference will be the speed of your returns. To double $20 would not only be easy, but it wouldn't take long. Maybe you could even find an opportunity and sell it within a day. If you had to double $650,000 you would need to find something like a house or a business and that takes time to buy and time to sell, but you could still do it. Also, you couldn't possibly make 100% in a single transaction in real estate, maybe at a stretch you could do 3 by 30% transactions. But it is do-able.