Have you ever heard of the velocity of money? Let’s compare it to compounding interest. If you remember, we said that compounding interest needs to be uninterrupted and continuous to work for us. We’re not going to throw this out, we want to use compounding, but we want to use it the only way that it works. Yet, there is something more powerful than compounding. It’s actually known as the velocity of money. Some have called it the motion or the movement of money. And in nature, everything is moving.
Compound interest is powerful. They can’t prove this but Einstein said that compound interest was the eighth wonder of the world. He said, “Either you can earn it or you can pay it. It’s your choice.” It’s either working for you or it’s working against you. If you know how it works and if you know what’s necessary for it to work, you’ll be able to be in control of it.