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Module 6

Reinvest and Compound

Converting income produced by assets into more productive assets, deliberately and on a stated rule.

Purpose

Why this module exists.

Convert income from productive assets into more productive assets deliberately and consistently.

Lessons

4 lessons

  1. 1

    Treating asset income as capital requiring an allocation decision, rather than as spendable money.

  2. 2

    How compounding actually behaves — slow, then accelerating — and why time in the structure dominates rate.

  3. 3

    How recurring costs and tax treatment reduce compounding, and which frictions a household can actually control.

  4. 4

    Writing the rule that governs asset income, including where it goes and when the rule changes.

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