20/11/2025
Two days ago when I shared that story about the mechanic and the tracker, many of you rushed to the comments and typed:
“TEACH ME COMPOUNDING.”
Good.
Because that single sentence you typed can change your entire financial destiny, if you understand what I am about to explain now.
Oya sit down… let me open your eyes with brutal honesty.
But let me warn you before we start:
This post is not motivational.
It is a financial awakening.
After today, you will never see money the same way again.
Now let’s begin…
First, What Exactly Is Compounding?
Forget the big grammar your Economics and Accounting teacher used.
Compounding simply means:
“Your money is working,
your interest is working,
your interest-on-interest is also working,
and all of them refuse to rest.”
Rich people do not work for money.
They make MONEY work for MONEY, 24/7, even while they are sleeping, eating suya, or pressing phone.
Poor people do the opposite:
They work for money…
Then spend everything…
Then start from zero again every month.
That is why compounding is called:
THE SECRET BANK OF THE RICH.
Now that you know.....
Let me open your eyes clearly, and show you Why You Are Struggling Financially (the Truth You Won’t Hear in Church)
Let me say it the way I told that mechanic:
“Your problem is not that you don’t make money.
Your problem is that your money does not stay long enough to bring children.”
Every time you earn money and you spend it immediately, you have killed compounding before it even wakes up.
But the rich?
They lock money inside assets and allow it to multiply quietly for years.
That is why a man investing ₦28,000 monthly can become richer than someone earning ₦400,000 salary.
Let Me Open Your Eyes again With Real Numbers
If you invest ₦28,000 every month
and your investment gives you 12% interest yearly
and you leave it untouched for 30 years…
You won’t just be “comfortable.”
You will cross ₦100,000,000.
Yes.
₦100 million from small ₦28k monthly.
Your total contribution?
₦10 million+.
The remaining ₦90 million+ will come from compounding.
Now look at example TWO:
If you invest ₦2,800,000 once
at the same 12% return
and leave it for 30 years…
You will STILL cross ₦100,000,000+.
This is why I always say:
“Compounding does not reward the hustler.
It rewards the patient.”
As your Financial Literacy Advocate, let me show you How To Start Today - Even if you are mama ngozi in the village with small money
Stop thinking investing is for rich people.
Rich people became rich because they invested first.
Here is the practical Step by Step:
STEP 1 - Decide Your Monthly or One-Time Amount
Can you do ₦5,000 monthly?
₦10,000 monthly?
₦20,000 monthly?
Whatever you can do… START.
Compounding does not judge you.
It multiplies anything you give it.
STEP 2 - Walk Into ANY of These Institutions:
Stanbic IBTC
First Bank
ARM
FBNQuest
United Capital
Chapel Hill Denham (InvestNaija)
Tell them clearly:
“I want to open a Money Market Mutual Fund account.”
Not savings account.
Not fixed deposit.
MONEY. MARKET. FUND.
Why?
Because these funds usually pay 15% to 20% depending on the year.
Your bank will NEVER give you this on savings.
STEP 3 - Automate Your Deposit
Tell them to deduct your contribution every month automatically.
Why?
Because human beings, especially Nigerians are emotionally weak.
If you depend on “discipline,”
you will spend the money on pepper soup and regret later.
AUTOMATE IT.
STEP 4 - Don’t Touch It.
Don’t Check It Too Much.
Don’t Panic.
Compounding is like farming.
If you plant corn
and start digging it up every morning to see if it has germinated,
you will KILL IT.
Allow your money to grow.
Give it time.
STEP 5 - Increase Your Contribution As Your Income Grows
If you start with ₦10k monthly, good.
If your salary increases, move to ₦20k.
If your business grows, move to ₦50k.
Every upgrade changes your future dramatically.
Now, let me tell you a secret Wealthy People Know
Rich people don’t laugh at small beginnings.
A man who invests ₦10,000 every month consistently
will beat a man who invests ₦1 million once and stops.
Consistency is greater than Size.
Discipline is greater than Motivation.
Compounding is Greater than Hard work.
Here's Why Most People Never Become Wealthy
It’s simple:
They start investing…
Something happens…
They stop…
They withdraw everything…
And start again later.
Every time you restart,
you reset your compounding clock.
And guess what?
Time is the MOST important ingredient in compounding.
Not money.
Not salary.
Not connections.
TIME.
Here's my advice:
If You Don’t Build Assets, Life Will Humble You.
Just like that tracker humbled me that night, life will humble anyone who builds lifestyle instead of assets.
That car you’re admiring?
They are still paying for it.
That guy you think is rich?
His loan balance is richer than him.
Focus on your journey.
Build your own financial foundation.
Let compounding be your secret bank.
Because one day, 15–25 years from now…
Your investments will grow to a level where life cannot stress you again.
If you want the next lesson on compounding,
COMMENT:
“I’M READY.”
When I see enough comments,
I will teach you:
The 3 stages of financial freedom
How to build wealth as a low-income earner
The biggest enemies of compounding
My name is Iking Ferry,
your Financial Literacy Advocate,
on a mission to raise 1 million financially free Nigerians.
Founder, Pulseford Business School
