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When God created the world, He chose not to make a money tree. He no doubt exercised great wisdom in doing so, or else we'd have to spend a lot of time literally raking in the money!

Even so, there is a phenomenon in money management that makes it seem as though money is growing on trees.

It's called the "magic of compounding".

You may remember the charts we looked at in Session 2 (see pages 28 and 29 in the Money your money course workbook) Those mat appear to be rather boring columns of digits, but in actuality they reveal a principle that can create an incredible balance sheet over time.

it's not surprising to realize that this principle has its source in His Word. Dishonest money dwindles away, but he who gathers money little by little makes it grow. (Proverbs 13:11).

Did you catch the basic concept there? Gather money little by little, and thereby make it grow.

That's precisely what compounding does. Whether you start with $100 or $1000 or $10,000 or more, the results over time invested at a reasonable rate can be phenomenal.

As stewards, we'er charged to manage His resources as efficiently and effectively as possible. The story of the talents which we read earlier, indicates that investing money wisely - and reaping the benefits financially - is a practice He encourages.

And that makes the magic of compounding a concept that's crucial for us to understand ... and put to work.

Calculate your loan interest as well as your compounding interest with our calculators.

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Today's Bottom Line

Compounding is a financial tool that helps us manageHis resources responsibly.

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