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All great wealth starts somewhere. Investment and compounding money are the well established pathway’s to wealth. All exponential money generation is responsible for the wealth people have. In this article we explore 3 ways to invest $100
To compound your money passively is one thing and you will get a certain result. Usually very low. To invest $100 in the traditional investment vehicles which offer returns of 5% to 10% would almost be futile. At 10% investing $100 you would have to wait 100 years to have a total of $1.4 million dollars.
If you had to wait 100 years at 10% you would probably say to yourself….well….I cant take it with me. What is interesting is that when we do these calculation’s to look at compounding interest, which is getting paid interest upon interest. We forget that it is not the years that matter but the number of multiplication’s. Essentially, we can look at the above example and ask…why do those 100 multiplications have to be years? Why can’t they be week’s? Or day’s?
The problem becomes interesting. Investing $100 to make $1.4 million dollar’s in 100 years is unworkable. But to make $1.4 million in 100 week’s or just 2 years, now it gets kinda exciting doesn’t it?
When we forget about banks and traditional investment vehicle’s we start to think, well, how CAN I invest $100 and end up with $110 by the end of the week? Because, if I can do that, there is nothing to stop me from making $1.4 million dollars in 2 years. The reason why is because the proportional increase is the same…it is always 10% so no matter what level you are at, $100 or $100,000 you are still after that same proportion or 10%
Another way to look at it, is what if we could raise the compounder? What if instead of 10% we manufacture 20% per week. That’s just $20 in the first week, in the second week it’s $22 and so on. This does sound do-able.
Actually it is very do-able. Think outside the square and develop a strategy that can make you $10 from investing $100 If you can do that, you have a unit of value in the form of an investment vehicle that could conceivably make you $1.4 million in 2 years or less.
Essentially you want to look at business model’s that are automated or semi-automated and that is a big clue. Because if it isn’t automated you must start from scratch every week. But if it is automated, then it becomes passive and that means you can add to it every week. So the one big answer that I can give you is look at the Internet. The Internet’s very nature is that it is automated. It’s like one big vending machine and all the user’s do all the work themselves and serve themselves.
So here are 3 way’s you can consider.
Ebay
You can look at purchasing thing’s for under value and resell them for 10% percent more after all cost’s. In this way you can progressively trade up and up from cars to land to houses to businesses.
Article’s
Buy 300 word articles for $5 and submit them to article directories on the Internet. You leave a link in the article going to a vendors site that you are an affiliate of. Say 100 articles bring in $1000 of commission’s that means your return is 100% So with your $100 you buy 20 article’s which give you a return of $200, then you buy 40 more article’s that give you $400 and so on.
Advertising
Advertise the products of a vendor you are an affiliate of. Google Adwords, MSN adcenter, and Yahoo advertising all provide a way to place a small ad in their search results. So when someone searches for “blue widget” and you sell blue widget’s you will be right there and get the referral commission. If you spend $100 on advertising and get a return of 50% you can easily compound that money into $1.4 million dollars by adding to your advertising and finding more and more products to represent.