Ann Wilson explains the miracle of compounding.
COMPOUNDING is a miracle ingredient that not only guarantees financial freedom for you, but if you choose to, can also guarantee that your children become multimillionaires, says CEO of The Wealth Chef Ann Wilson.
"For most people ... you work really hard your whole life, hopefully save a bit and then when you retire, hopefully you can live off that bit and it will last you long enough and hopefully you die before it runs out.
"Now for me that is barbaric," says Wilson.
She says compounding is the yeast that expands wealth and makes it grow but only if you know how to use it.
There are two key factors when it comes to compounding. One is money and the other is time - this is where the magic really happens.
"The real key spice to making compounding work for you is time," says Wilson
This is the second video in a three part series:
Download: Index Trackers and Simple Equity Investing
Download: Net Worth Monthly Income Projector
* Ann is the CEO of The Wealth Chef
, a company that teaches people around the world how to make, keep and grow their money so they can become financially free. She is also one of our experts
who answer user questions.
** Add your voice to our Women's Wealth Issue and help empower others this Women's Month.
Write a guest post
Share your coping tips
Ask the experts