The Eighth Wonder of the World
My American grandfather is definitely a man in the moment. He's very smart, self-educated on a lot of things and lives for the day. He was a NYC sanitation worker. He takes it as it comes. My Polish grandfather is a smart and deliberate man. He is one to plant a sapling and happily wait 20 years to sit in the future tree's shade.
The other day I was thinking about what my life might be like 20 years from now. The fantasizing ranged from sleeping on a sofa in my parent's house to curing cancer while living in Paris. The same day I saw a quote attributed to Albert Einstein that read “compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn't, pays it.”
That night I spoke to my dad about the concept. He told me about dividend stocks and how some of the richest people, such as Warren Buffett, created wealth slowly, over time by buying stocks in good companies that pay dividends and reinvesting each dividend paid to buy more of that stock. I liked the idea of growing some future economic shade -- did some research and concluded that utility type stocks seems like a good bet to still be around 20 years from now -- especially ones that deliver customary forms of energy as well as alternative forms of energy, such as solar and wind power. I used some savings to buy 10 shares in one such company (NextEra Energy). Hopefully the start of a lifelong portfolio that grows over time through the magic of compounding.