Let your money do the heavy lifting, not the athletes
The pick52 method is a long term strategy, guys. We all want more money right now, we all want to launch a home run (read: hail mary) play to double our pot. We all handicap to reduce our debts or improve our lives in ways unique to our tastes and economic obligations. Obligations like mortgages or our female companion's interest in vacations. We'd like to try and help you forget about that type of strategy and retrain yourself to play more selectively, using patience and foresight as the centerpiece of your strategy
Understanding the power of compound interest is a key component to understanding the pick52 method and VITAL to remaining on track with the first 6 months of your play schedule
Most of us have at least vague memories of the mention of compound interest from high school. And most of us zone out at the mere mention of any math or economics related data or financese. Our eyes glaze over. But stick with me here real quickly, it'll just take a few minutes, because I want you to understand, if you don't already, the power of compound interest as it relates to something that DOES excite you - sports investing
The simplest way to think of compound interest I've ever heard is an analogy my high school calculus teacher taught in class, and it's as easy to understand as it gets.
Imagine you have a single piece of loose leaf paper and you fold it in half. Theoretically, that piece of paper is twice as high as it use to be. It may also help to think of adding stories to a building. Add 1 to 1 and you have 2, Add 2 stories to those 2 and you have 4. Add 4 to those four stories and its 8. Then 16. Doublling as you go on. In just 5 folds, you've increased the heighth of your building or your folding piece of paper by 1600%
Compund interest doesn't work exactly like that, but its similar enough for our purposes. With compound interest, you earn interest on interest. At first the gains don't appear to be significant. Yet over time you'll see your returns spike exponentially:
http://ownyourcarforfree.com/images/compounding.gif
