Targets 1 through 11 Taken Out

In one of my first post called The Model, I used an example of compounding a penny everyday for 20 days, as a model. Each day was used as targets to hit in my investing. It has taken 6 months to hit targets 1 though 11.

Below is a report I wrote showing my progress in building passive income.

How to earn passive income in 30 days or less without recruiting

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When target 18 is acquired, I will have reached a personal level of financial independence. Any additional targets that are achieved beyond that would be a life style upgrade.

Here are the targets that were set. The numbers in green show the targets that have been hit. The number in orange is my next target, and the numbers in red are future targets.

# of Days 1 Penny Compounded Daily

Day 1 ------------------------------>$0.01

Day 2------------------------------> $0.02

Day 3 ------------------------------>$0.04

Day 4------------------------------> $0.08

Day 5 ------------------------------>$0.16

Day 6 ------------------------------>$0.32

Day 7 ------------------------------>$0.64

Day 8 ------------------------------>$1.28

Day 9 ------------------------------>$2.56

Day 10 ------------------------------>$5.12

Day 11------------------------------> $10.24

Day 12 ------------------------------>$20.48

Day 13 ------------------------------>$40.96

Day 14 ------------------------------>$81.92

Day 15 ------------------------------>$163.84

Day 16 ------------------------------>$327.68

Day 17 ------------------------------>$655.36

Day 18 ------------------------------>$1,310.72

Day 19 ------------------------------>$2,621.44

Day 20------------------------------> $5,242.88

It is truly amazing to look back at ones actions over time when guided by a plan and see it start to manifest before you.  It was not until today when I sat down and looked at my original plans that I saw that I have made far more progress than I thought.

I have often been side tracked by other "Opportunities", but the plan that I originally set seems to be coming true. I have no idea how to long it will take to reach target 18 or higher, but I will continue to take it step by step.

If I have actually applied this to a penny and hit the 1st 11 targets, could it actually be done asking a person to join the team for 1 dollar? Building that would be life changing. Time will Tell

Applying Kiyosaki's So Called "Unfair Advantage"

When I facilitate groups with my kids at work,  one of the concepts that I teach them is called "LAP". This is an acronym which means: Learn, Apply, and Practice. The video above is called An Unfair Advantage, which refers to the advantage that a person has when they have learned, applied, and practiced effective financial education. In an earlier post a projection of a penny compounded was shown over a 30 day period. In this article I want to focus on the first 20 days.  I will use the first 20 days as targets to aim at as I write my blog articles. 


Targets 1 through 6 seem to have already been achieved based on my current investing.  Targets 7 through 13 are so small that I am almost embarrassed to mention them, yet they are necessary steps that need to be taken in order to get to higher levels. Targets 14 through 17 would relieve some financial pressure. And, Targets 18 through 20 would create life style upgrade.

Target 1 ------------------------------>$0.01

Target 2------------------------------> $0.02

Target 3 ------------------------------>$0.04

Target 4------------------------------> $0.08

Target 5 ------------------------------>$0.16

Target 6 ------------------------------>$0.32

Target 7 ------------------------------>$0.64

Target 8 ------------------------------>$1.28

Target 9 ------------------------------>$2.56

Target 10 ------------------------------>$5.12

Target 11------------------------------> $10.24

Target 12 ------------------------------>$20.48

Target 13 ------------------------------>$40.96

Target 14 ------------------------------>$81.92

Target 15 ------------------------------>$163.84

Target 16 ------------------------------>$327.68

Target 17 ------------------------------>$655.36

Target 18 ------------------------------>$1,310.72

Target 19 ------------------------------>$2,621.44

Target 20------------------------------> $5,242.88

As a youth counselor I have never earned over 30 thousand a year. Targets 19 and 20 would create financial independence and wealth for most people in my peer group.  The challenge is to figure out how to bridge the gap between Target 7 and 18.


All I can do at this point is take one step at a time. I currently earn approximately 60 cent a month through dividends. I know this is not a lot of money but it is a start. I will start saving at least 30 dollars a month and invest that money into dividend paying stocks. When I have built up enough money I will move into covered calls. My next target is to raise my 60 cent in income to at least 64 cent.


What are your Financial Targets? Please tell what they are in the comment box below.

The Model: Compound Interest

A person that I have a great deal of admiration for is Albert Einstein. He once said that "Everything should be made as simple as possible but not simpler." And, when asked what the greatest invention of man was, he said compound interest. He considered it to be the the 8th wonder of the world. 


When Einstein was asked to expound on his statement about compounding he said "Compounding is mankind's greatest invention because it allows for the reliable systematic accumulation of wealth."


The power of this concept is clearly shown when one takes a penny and doubles it or compounds it(@100%) for 30 days. At the end of 30 days the penny's value has gone from 1 cent to over 5 million dollars.

Here is the mathematical progression:

# of Days 1 Penny Compounded Daily
Day 1 ------------------------------>$0.01
Day 2------------------------------> $0.02
Day 3 ------------------------------>$0.04
Day 4------------------------------> $0.08
Day 5 ------------------------------>$0.16
Day 6 ------------------------------>$0.32
Day 7 ------------------------------>$0.64
Day 8 ------------------------------>$1.28
Day 9 ------------------------------>$2.56
Day 10 ------------------------------>$5.12
Day 11------------------------------> $10.24
Day 12 ------------------------------>$20.48
Day 13 ------------------------------>$40.96
Day 14 ------------------------------>$81.92
Day 15 ------------------------------>$163.84
Day 16 ------------------------------>$327.68
Day 17 ------------------------------>$655.36
Day 18 ------------------------------>$1,310.72
Day 19 ------------------------------>$2,621.44
Day 20------------------------------> $5,242.88
Day 21 ------------------------------>$10,485.76
Day 22 ------------------------------>$20,971.52
Day 23 ------------------------------>$41,943.04
Day 24 ------------------------------>$83,886.08
Day 25 ------------------------------>$167,772.16
Day 26 ------------------------------>$335,544.32
Day 27 ------------------------------>$671,088.64
Day 28 ------------------------------>$1,342,177.28
Day 29 ------------------------------>$2,684,354.56
Day 30 ------------------------------>$5,368,709.12

When I look at this I find it to be amazing. Based on my understanding this could have practical application if we copy the actions of the wealthy. This can be broken down in 3 steps: (Step 1) Buy Assets or things that pay us. (Step2) Re-invest the profits. And (Step 3) Form a network.


If this is done consistently compounding effect would take place. Our Asset Column would grow when we purchase an asset and re-invest the profits. Our "Wealth Investment Network" would also grow when we find people who are willing learn apply and practice wealth principles.

The next question to answer specifically is --> HOW????


I'll tackle that in my next post.