There is an entire chapter devoted to compounding in THE COFFEEHOUSE INVESTOR book. We talk A LOT about this simple fantastic perk to saving money. However millions of investors miss out on this concept because they do not allow their investments a chance to sit and compound.
In the book, a $10,000 investment is given as an example of what can happen when you let your investments compound over a 20-year period… a $386,140.00 gain! This $10,000 investment is a large-scale example but let’s simplify this down to our everyday life choices. Vanguard breaks down a cup of coffee and what can happen if you miss out on compounding frivolous expenses over a 30-year period.
The point is not to focus on the daily minutiae but rather, see the big picture of investing as a whole. Don’t miss out on simple concepts like compounding.