One thing you need to know about life and about how to make money is compound interest. Now, before you say, Bill, I've heard about compound interest before.
Let me just tell you a little bit about what compound interest can mean and why so few people talk about compound interest. I believe Albert Einstein once called it something like the greatest force in nature was compound interest. And so for a second, I want to understand what is compound interest? Well, the human brain cannot understand exponential numbers. What do I mean? What I mean is that the human brain can only really understand small numbers and round numbers. For example, as I understand it, thousands of years ago, right.
We knew of one apple, two apples, three apples. But it's very hard for somebody to understand. Exponential growth and exponential growth, frankly, can happen through compounding of interest. Now, we could talk about money in the second or we could talk about something that leads to money, which is compounding information and knowledge over a long period of time. And that's what we get with compound interest. Let me give you an example. Let's say that you wanted to be a plumber and you were 18 years old or let's say 20 years old or let's say 40 years old.
Well, what could you do to take advantage of this law of nature, as I call it, which is compound interest? What you could do is you could wake up every morning and study one little piece. And that's very important little piece about plumbing. And you could do it the next day and the next day and the next day. And again, your brain won't necessarily understand that what you're building here is almost like a house of knowledge. But what will happen is you'll slowly but surely become an expert in plumbing.
And if you can add up each and every little piece of information that you understand in terms of compound interest, you can start to compound your knowledge in terms of, in this instance, plumbing. So let's talk a little bit about money, which obviously plumbing or knowledge of something that you can compound over time can lead to the power of compound interest in terms of money. As we talked about, compound interest in terms of money is not very important unless you can deliberately understand that you're doing it.
What do I mean? What I mean is let's say you put a dollar away every year for five years. Well, you really wouldn't understand how much money you had until the end of the compound interest. OK, Bill, so what are you saying? What I'm saying is both whether it's information in life or whether it's money in life, compound interest in the facts of compound interest. The benefits are not seen until two, three, four or five years and longer.
And so, you know, they say patience is a virtue. Well, the reason patience is a virtue is because whether it's compounding of information or whether it's compounding of money, those things aren't seen until five years after the fact, ten years after the fact, some cases 20 years after the fact. So, again, I just wanted to talk a little bit about compound interest. If Albert Einstein called it, whether he called it, I think it was like a force of nature.
He may have even called it the eighth wonder of the world. So if somebody like that is calling it compound interest and then I'm telling you that we can compound our knowledge and we can compound our knowledge with little baby steps every day, baby steps little by little.
The brain can't comprehend it on a day to day basis. But when you wake up in three or five years, it will be something really beautiful. Anyway, I hope that was helpful.
Please let me know if this was helpful. You can go ahead and just tweet out me at Mention Me that you listen to this podcast. I really appreciate it. We're going to keep on helping people both with knowledge and with direct assistance, with direct money. As you know, I give away a lot of money and frankly, I've been the benefit of compound interest specifically with regard to buying and selling companies. That's really how I compounded my interest. And eventually one day I woke up and I had a bunch of money and I said, what the hell am I going to do now?
I've got to help some people. And I'll tell you money. It's a high class problem to have, but it can be very helpful to you. But if you're not careful, it can make you go crazy as well. And so one of the main reasons I do this, after having compounded my wealth and hopefully keep compounding it and compounding it, is I can help more people and compound the helping of people. Now that I've compounded my money, you see how that all works out and you can do that exact same thing, too.
So let me know if this inspires you. Let me know if you have any feedback, any. Critiques always love critical feedback. Always love it and mention me on Twitter at 40 and I love you. Bye bye.