Programs For Compounding Money

The idea of compounding your money is probably as old as the idea of money itself. It's no surprise that there are countless money programs online promising to increase your wealth.

You can find hundreds of so-called HYIP's or High Yield Income Programs online. They come and go by the boards. Most are scams, never meant to pay back "investors".

Many money programs, even with the best of intentions and honest admins, fail anyway due to lack of experience, outright ignorance, or any number of reasons.

So What Is Compounding?

You may have come across the classic fable about compounding a single grain of rice.

The story is a powerful metaphor for the awesome power of increasing the quantity of something exponentially.

There are many versions of the story. Basically it involves a wealthy king, maharaja, emperor, whatever, granting a favor to someone.

Sometimes the recipient of the favor is a young girl or a poor farmer, or the person responsible for inventing the game of chess.

The request seems simple enough. One grain of rice for the first square of a chess board. Then double it for the second square. Double that for the third square, and so on.

The benefactor agrees and orders the delivery of one grain of rice for the first square, two grains for the second, four for the third, and so on.

Too late, he discovers he has been tricked. He would never have enough rice required by the sixty-fourth square, the last square of a chess board.

Successfully applying the concept of compounding is why or how the rich get richer. Failing to apply this principle the poor get poorer.

Enough theory. Let's look at some real life examples. Let's look at some programs promising to compound our money.

A dictionary defines compounding as -

to pay (interest) on the accrued interest as well as the principal:

My bank compounds interest quarterly .

My first example of compounding money uses an online program called ad2million.

You purchase advertising positions using an online currency account, in this case AlertPay. The ad2million program then promises to pay you 2% daily on each of those positions purchased.

That is, each $10 ad position you purchase earns 20 cents daily. Buy ten ad positions for $100 (plus AlertPay fees) and you will earn $2 daily.

Say you purchased $100 of advertising positions, then after 7 days your purchase would have earned you $14, so you now would have $114 in your ad2million account.

The power of compounding begins when you use some of that $14 to buy another $10 ad position. You now have $110 of ad positions earning 2% per day.

Of course ad2million could vanish tomorrow and you would lose the lot. So this strategy is only for those willing to risk some spare cash.

And of course it's important to withdraw your original investment from any earnings as soon as you can. My plan is to alternate between cashing out and re-purchasing further ad positions.

I have purchased some $10 advertising positions in Ad2Million. It allows for the compounding principle as you can see from the table on the right.

Programs like ad2million appear and disappear overnight on the internet. Sometimes, however, they can run successfully for some months. Even years. GoldNuggetInvest was one such program.

I will keep this page updated on my results with the ad2million program. At this stage I have compounded my original purchase earning enough to purchase further ad positions.

Update - I have received payouts from ad2million and then proceeded to alternate between withdrawals and compounding for as long as the program lasts.

Update - I have withdrawn my initial "investments" in the program. However, the program now requires further investments before you are allowed further compounding and withdrawals.

Therefore I no longer recommend putting money into Ad2Million. As of this writing the program is taking longer and longer to payout. This has always been a sign of the demise of countless such money programs.

Note the chart on the right. You have heard that the value of paper currencies such as the US Dollar have gone down.

You are not being told that the value of gold has continued to climb ever upwards.

Long term it always has. Experts maintain gold always will. Some say silver is destined to become more valuable than gold. Max Keiser recommends we buy silver now. One reason is because it is so much cheaper than gold.

Before you get involved in any risky "investments" online, make sure you check out my hubpage about -

investing in gold and silver.

Although I continue to dabble in HYIP's such as ad2million or JSS Tripler, that's with "pocket money". I believe it's far more important to begin accumulating one or more of the precious metals for lasting, long term wealth and financial security.