The Penny Story

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Have you heard of the penny story? Years ago a wise man related a story in his endeavor to explain compound interest to his grandson found
the effort more difficult than he had imagined. Now through the years this story has been altered many times but the essence of it, the reality of it,
the simplicity of it has never changed and is as true today as it was back then.

The grandfather in his attempt to explain to his grandson the benefits of investing and receiving compound interest and how the magic of compounding can literally all by itself make anyone with patience and determination wealthy.

He first talked about investing just $1k at a very modest return of only 7% and that $1,000 would double and the investment would return compounded interest compounded daily and in just seven short
years that 7% compounded daily interest would turn that $1,000 into $2,000 with no effort on behalf of the investor. The young grandson eager
to obtain his own fortune like his grandfather had, was struggling with the concept so…

The grandfather offered this example… “Son” he said, “If I offered you $1,000 in CASH now or just ONE PENNY that would double in value every
day – it’s compounding, – which would you rather have from me?” The grandson quickly answered, “Well, of course Grandpa, I’d much rather have the one thousand dollars now! Are you kidding?”

To which the grandfather replied, “All right then, let me tell you what you will be giving up.” “If you invest just one penny today, and every
day it doubles in value, in just 20 days it will be worth…” Do the math with me…

Day 1: 1 penny becomes 2,
Day 2: 2 becomes 4,
Day 3: 4 becomes 8,
Day 4: 8 becomes 16,
Day 5: 16 becomes 32,
Day 6: 32 becomes 64 cents,
Day 7: 64 becomes $1.28,
Day 8: $1.28 becomes $2.56,
Day 9: $2.56 becomes $5.12,
Day 10: $5.12 becomes $10.24,
Day 11: $10.24 becomes $20.48,
Day 12: $20.48 becomes $40.96,
Day 13: $40.96 becomes $81.92,
Day 14: $81.92 becomes $163.84,
Day 15: $163.84 becomes $327.68,
Day 16: $327.68 becomes $655.36,
Day 17: $655.36 becomes $1,310.72,
Day 18: $1,310.72 becomes $2,621.44
Day 19: $2,621.44 becomes $5,242.88,
Day 20: $5,242.88 becomes $10,485.76

$10,485.76! Wow! From just that first penny! The penny story is powerful

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I don’t say this to boast, I just want you to know the nature of the people whose team you will be on, and I’m on Mike G’s team. Now I don’t expect to do it all myself… Once you join make it your mission, make it your goal
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