Exponential money generation is an old idea. Barely noticed by the average person, it is still the single most utilized concept by rich Entrepreneurs the world over.

When we put an amount of cash in the bank, the bank will offer us an interest payment for the use of that money usually in the range of 5-10% depending on the current level of the over night cash rate. This passive income is very useful on a large scale. For example a person with $10 million dollars would be offered quite a bit more for the use of that sum however, at 7% the annual return is around $700,000 per year. That is a very useful sum to be able to utilize as discretionary income. Indeed one could live very well for the remainder of their lives with such a comfortable return simply by keeping their money with a bank.

The problem for most people with this desirable mechanism is that they don't have $10,000,000 in the first place. They don't have nearly that much.

So the question becomes how to get it in the first place so money can be a concern of the past so we can get on with the more interesting activity of living.

If we put $10,000 into a bank account and watched it grow exponentially at 10% we would at the end of 10 years be underwhelmed by the results. We would be the proud owners of $26,000 Not bad, but certainly a long time to wait and not a particularly useful amount of money.

What if we tried 100% The result would be more astonishing I assure you. In ten years at 100% we would have over $1 million dollars. OK this is getting fun. Lets try 500% how long would it take for it to get to $1 million dollars at 500%? About 2 and a half years.

What about 1000%? around a year and a half.

What about if instead of annual we focus on monthly? But the second question is where are we going to find someone willing to pay us 100% per month for example. Nobody wants money that bad that they will be crazy enough to offer that sort of compounding. Or will they?

Exponential money generation is a concept that deals in found or created excess intrinsic value. Is the value of a dollar note any different to the value locked in the $1 dollars worth of chocolate you just bought? No, its exactly the same. Except you can consume the chocolate but you can't consume the dollar note. So the chocolate actually has more worth depending on circumstances and needs.

The point is that its value that we all want and need. Money is a numerical commodity that helps make value portable. But here is the thing that makes exponential money generation so lucrative. When value is stored in investment objects or assets, its measure is generally a perception. Unlike value when its stored in money itself, which because its numerical, it can be counted and has a fixed number that everyone can see. Would you swap $1000 for $582? You wouldn't specifically because you can see without difficulty that the trade is uneven. In fact you can see to very fine levels indeed. Even $999.99 is not a fair or even swap for $1000

But what happens when you trade value in the form of an object for value that is in the form of money? Emotions and human perception has a large role to play.

You can definitely make a 100% return on your money per month if you so choose, this is the typical way entrepreneurs make their fortunes fast. Whether trading in boats, luxury cars, precious stones or property, the concept remains the same.

One million dollars in for example 12 months is not only possible but its quite likely using money leverage. Anyone can do it starting with virtually nothing. Its the decision to try that generally stops the non-believers.

Martin Thomas (c)2005

Martin is a professional investor and Entrepreneur. If you would like to discover more about being an entrepreneur, you can read "The Million Dollar Mentor" by Hayden Muller. Martin recommends this work highly and has used the very concepts contained in the work for his own successful entrepreneurial activities. http://www.opportunity-investor.com

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