Exponential growth = Explosive growth

To understand exponential growth, first let's understand what is "linear growth". The definition of linear is " the outcome is proportional to the input". In layman's terms that means you get out what you put in - nothing more, nothing less. In linear income growth, one unit of time equals one unit of money. As a result , the only way to increase income based on linear growth is to work more hours or get a raise.

H (Hourly wage) multiplied by N (Number of hours worked) = I (Income)

Work all day,

Live on hay,

When you die,

Pie in the sky.

- Joe Hill, 1920's union organiser.

So in arithmetics linear growth would be 5 + 5 = 10

Linear gets its name because the growth occurs in a straight line step by step.

Exponential on the other hand, refers to a more sphisticated form of multiplication known as "Squaring". Exponential growth would be 5 multiplied by 5 = 25 (VS linear equation 5+5 = 10)

Exponential gets its name from the number of times the number is multiplied ny itself. So, Linear growth is incremental and gradual while exponential growth is drastic and dramatic.

Here's a simple equation to always keep in mind when you are investing your money or your time.

"Linear equals limited.

Exponential equals Explosive"!

Rule of 72!

To better understand exponential growth let's work on this simple formula. To calculate how long years it will take for your invested money to double, first determine the annual interest rate. Then divide the interest rate into 72. The number you end up with is the number of years it will take for your investment to double. This is also called "rule of 72". For example:

Original investment (10,000 $). 10 % return (interest) on investment. 72/10 = 7.2

So it will take 7.2 years for your investments of 10,000 $ to become 20,000 $.

Number of years...... Linear growth($)........ Exponential growth($)

0...............................10,000 ..........................10,000

after 7yrs ..................10k + 10k = 20k ............20,000

after 14 yrs................. 20k + 10k = 30k............40,000

after 22 yrs .................30k + 10k = 40k ............80,000

after 29yrs ...................40k + 10k = 50k...........160,000

after 36 yrs ..................50k + 10k = 60k ..........320,000

The chart shows the powers of exponential growth and limitation of linear growth. This is the basic principle on which ULIP works.

It is not enough to be busy; so are the ant. The question is what are we busy about?

Time is money!

So the question is "How can you create wealth through exponential growth without having to invest thousands of dollars or without having to wait a lifetime while youe small nest egg doubles itself into a small fortune?"

The answer is Network marketing through ULIP.(In India)

It's true that most people in the world don't have much money but one thing we all have is time. Here's a simple formula for success in the coming decades.

T = Time invested in duplicating a copycat model (franchising concept)

E = Exponential growth

$ = Financial freedom

T multiplied by E = $

Even the bible recognizes the importance of taking advantage of compounding as evidenced by Jesus' Parable of the unprofitable servant'. The parable goes like this

The master of a large estate was preparing to leave on a long business trip. He summoned three trusted servants and gave each a sum of money for safekeeping. The first servant recieved five talents, the second servant, two talents and the third one talent.

The first two servants invested the money they were given, and when the master returned, they had doubled the principle and were praised by the master for their wisdom.

The third servant, however was afraid of losing the money, so he buried it in the ground, he returned the single talent to his master, and nothing more. The master chastised the servant for not investing the money with bankers, and angrily dismissed him on the spot.

The parable points out the importance of making wise and productive decisions, whether they be financial or spiritual decisions. It's not enough to be blessed with opportunities or money or talents or abilities or a soul. The real issue is what you do with those blessings - whether you bury them in the ground, so to speak, or invest them wisely so that they grow and multiply.

So with compounding your money works for you even during sleep! :)