Let the Corn Grow - Compound Interest

 

Mar.4:28 For the earth bringeth forth fruit of herself; first the blade, then the ear, after that the full corn in the ear.

One of the best ways to accumulate wealth is through the effect of compound interest i.e. interest paid on interest or other people’s(bank) money making you money.

Mat.25:27 Thou oughtest therefore to have put my money to the exchangers, and then at my coming, I should have received mine own with usury.

If you imagine the soil is your bank or investment portfolio and you plant one kernel of corn in it, you will see results, first a leaf, then the formation of the ear and finally the ear full of kernels.

You started out with one but now you have a full ear of corn which you can plant to exponentially multiply your initial investment, and best of all these are kernels you did not have or were not yours. You will then have to decide, do I eat the corn, or do I plant it. To accumulate wealth would mean that you replant the corn. If you eat it you will always have just the one kernel to plant and nothing changes for you or your future.

Mat.13:23 But he that received seed into the good ground is he that heareth the word and understandeth it; which also beareth fruit, and bringeth forth, some a hundredfold, some sixty, some thirty.

I recently made enquiries about an investment I had made and the reply I received was literally ‘Shut up and wait.’ It reminded me of something I had read in Morgan Housel’s book The Psychology of Money: Timeless lessons on wealth, greed, and happiness.

The secret to investing is the power of compound interest. Be patient and enjoy the compound effect. “The most powerful and important book should be called Shut up and Wait. It’s just one page with a long-term chart of economic growth.”

From another book by Morgan Housel Same as Ever: A Guide to What Never Changes Extraordinary things happen from the compound of little things.

Compound interest is wonderful but it needs patience, consistency and discipline. In today’s quick-fix culture, we all want immediate returns hence the prolific growth in day trading and cryptocurrency but with saving and investing, time and patience are your friends. Let the money do the work.

More from Morgan Housel: More important than the flow of the faucet, is how much is lost through the holes in the hose. “Building wealth has little to do with your income or investment returns and lots to do with your savings rate.”

Saving consistently is the ideal. Decide on an amount to save every month and stick to it. Unfortunately, we look at the things that need to be paid at the end of the month before deciding how much to save.

Song of Solomon 2:15 ...the little foxes that spoil the vines...

That new pair of shoes, the latest phone, that label on our clothes that cost so much. There will always be something to distract us and eat our savings. We must decide if we need that cake or that bottle of wine. It is up to us to say “NO”. It is up to us to say “I AM SAVING FOR...” and then to fill in the blanks. Hopefully, it is not a car or clothes but wealth, independence, and freedom from worldly status.