Fractal is a geometric object that displays symmetry at various scales. If we magnify the fractal visually, we will see a pattern similar to the original larger object. This property is also called the likelihood. Everywhere in nature, you can find fractals. We will explain the fractal effect on the easiest topic to understand. On money and saving, or better say “How can we get rich?”
The fractals themselves may not help you in gaining wealth, rather it is an understanding of compound interest. Let’s say you decide to invest 100 euros and get the chance to get a 10% annual return. At the end of the year, you will have your hundred and a further 10 euros back. However, as you continue to value your money in this way, the process begins to behave fractally.
Already in the second year, when you put your 110 euros into a tool that carries 10% a year, your 10 euros of interest from the first year in the form of one euro per year is also worth it. Ten Euros of interest rate from the first year will begin to act as your deposit of 100 euros in the first year. This process continues every other year, interest is gaining.
Compound interest
The beauty of compound interest is that it continues to behave fractally with each increasing interest rate. Money raises money and you get rich. Tracking how fast the fractal grows in this process is amazing.
If you still doubt the power of the fractals, remember the alleged words of Albert Einstein. When he asked the genius physicist, what is the strongest in the universe, he responded: “a compound interest.”
The real power of fractals is that their complexity comes from several simple steps that are repeated and repeated again. This is the power and beauty of nature, but it also applies to your financial life. Repeat a few simple actions again and again to secure the path to wealth: save, invest, regularly rebalance. Simple action repeated many times leads to great results.
The name of one of the most famous fractals is after mathematician Benoît Mandelbrot. It is the Mandlebrot set that he visualized with computers in the late 1970s. But Mandlebrot, in his book The Behavioral Behavior in the Financial Markets, has traded in the financial markets, criticizing it for relying on the normal distribution of securities. Perhaps the most extravagant one is his decision to accept a middle name. Although there is no record indicating that he had a middle name at birth, he decided that at some point in his life, he would take the initials “B” as his middle name. No one knows what “B” actually represents, but theories suggest that it was based on its own name. Yes, even his name “Benoit B. Mandlebrot” was fractal.