You have been brushing on your mobile phone until you make 1% progress every day. After one year, your ability can be improved by 38 times, showing compound interest growth. At that time, I really felt that as long as I did this, I could become a cow in a year, and I could change my destiny and turn over ... < P > I didn't know until I read Liu Run's The Bottom Logic that I was still daydreaming. First of all, let's understand carefully that it is impossible to make progress of 1% every day compared with the previous day and last for 365 days.

Another example is that if you invest RMB 11,111 yuan, you can get 11% income every year. After one year, your principal and interest will be RMB 11,111, and after two years, your principal and interest will be RMB 21,111 ... According to this compound interest return, after 25 years, it will be RMB (1.1) to the 25th power, which is a hundredfold increase. If it is 21% income every year, it will be 25 years. Is there a feeling that you can make money lying down?

In this way, if I invest 1 million yuan now, will I have 111 million yuan in 25 years, so I can retire as long as I earn 1 million yuan?

this involves the principal, the number of installments and the interest rate. Total result/income = principal (1+ interest rate)? First of all, let's talk about interest rates. In the real financial world, it is almost impossible for interest rates to be stable at 11% for a long time, and interest rates are very unstable. What's more, the higher the rate of return, the higher the risk.

The other two variables, one is time and the other is principal. For us, people's life is limited, and time is naturally limited, so the only thing that can be greatly improved is principal. It is to constantly improve yourself and increase the amount of principal, which can bring considerable compound interest income.

the thinking of compound interest is not to get rich instantly, but to rely entirely on interest rolling. For us in general, it is still necessary to constantly improve ourselves, cultivate our ability to create wealth, and increase the principal in order to gradually move towards wealth freedom.