Snowballing and Compounding: Taking Economic Secrets and how it Applies to Steemit

This concept known as snowballing in economics is probably the most powerful thing I have learned in my economics class in high school. It is useful for getting out of current debts and also for creating wealth. Take all the bills you may have and line them up from the smallest to largest. Pay the minimum for them that is due monthly well-paying as much as possible on the largest bill. Repeat until your largest bill is paid off and move to the next largest in the lineup. This next one should be easier to pay off than the one before it. If you repeat this process you will have more funds to pay off the next bills because you are no longer having to pay off larger bills. So your economic power that would have gone to those bills can now be used to pay off one or more bills depending on how much you saved. Simply put, it might start off slow but as you build up your economic power just like a snowball going down the hill it will pick up speed and power. Your bills will shrink and in your economic snowball will grow and surely plow through them with no problem. As time goes on it will get easier and easier and at the end you will have a surplus.

now it might be very tempting now that you are out of debt and have funds to do whatever you choose. Here is what I would do, you can make your own decisions though. I would've invest it. Whatever profit made from it I would invest again, again, and again. This is another wealth building secrets or tool known as compounding or compound interest. The basic concept is reinvest profit made from investments and keep it going until you are satisfied with the amount. With this powerful concept you can almost exponentially grow your wealth. It is very similar to snowballing but instead of getting rid of debt you can create wealth.

How can these economic concepts be applied to Steemit will look at your steem power as a snowball.first starts off small, but if you add to it from blogging, of voting, commenting, or even just by buying more steem power it will grow. It will grow by what seems like about 1% daily and steem power value.It is basically compounding 1% daily. At some point it will get so big that it will grow on its own without any input but there's always benefit, even if small of actively being engaged on Steemit. This is great that people can use and benefit from what Steemit has created by a system in which one's wealth can grow. I am hoping one day my steem power snowball will become an avalanche.

This is not investment advice, make your own decisions when investing in anything. Thanks for reading.