The Snowball Effect: How To Compound Your Wealth Using Dividends?

Amrut
Amrut
Feb 15, 2019 · 9 min read

You know what happens when you push a small snowball down a hill. It continuously picks up snow and becomes a gigantic snowball when it reaches the bottom of the hill. The snowball compounds as it is rolling down the hill.

The snowball effect is an analogy for compounding. It explains how small actions can lead to big gains over time.

This article shows how to harness the power of the snowball effect to multiply your wealth and income many times over using Dividend Reinvestment Plans (DRIPs)