THE ETERNAL ENCHANTMENT OF COMPOUNDING

Benjamin Franklin inventor, author, philosopher, and one of the founding fathers of America in 1790 took a decision that continues to astound economists and investors to this day more than 200 years later. Franklin bequeathed $2,000 to each of his favorite cities: Boston and Philadelphia. But there was a condition the money could not be spent for 200 years.

Initially, folks thought it was an odd idea, perhaps even futile. After all, $2,000 wasn't a fortune — not even in those days. But Franklin had something the world didn't yet comprehend: the unrelenting force of compounding.

The Waiting Game

Franklin's will said that part of the fund could be spent after 100 years, and the balance only after 200. So, both cities put the money to work cautiously allowing interest to quietly accumulate, year by year, decade by decade.

What began as $2,000 continued to grow… slowly initially, then nearly miraculously.

By 1890 (100 years on), Boston's share had already grown to more than $100,000, and Philadelphia's wasn't much behind. But the magic really worked in the second century.

By 1990, when the last 200-year milestone came, Franklin's $2,000 had become a whopping $6.5 million.

The Results

And what did they do with it?

Both towns chose to make Franklin's memory a reality by devoting the funds to education, scholarships, and community projects the very type of lasting impact he had in mind.

Boston invested its share in technical schooling and scholarships, enabling young minds to make their own tomorrow. Philadelphia also invested its profits in public projects and education, continuing Franklin's faith in progress.

The Real Lesson

Franklin's experiment wasn't about money it was about vision. He understood that time and patience can make even small moves gigantic change.

His $2,000 donation showed that you don't have to be a billionaire in order to leave a legacy — you just need discipline, time, and faith in the power of compounding.

Albert Einstein once aptly described compounding as the "eighth wonder of the world." Franklin had lived that reality two centuries earlier than anyone else turned it into a buzzword.

What It Teaches Us Today

Most individuals have an underestimate of what they can accomplish in decades but an overestimate of what they can accomplish in one year. Franklin's life is a reminder that wealth as with greatness accumulates slowly, quietly, and steadily.

If you invest ₹10,000 now and allow it to grow at 10% per annum, in 40 years it's worth more than ₹4.5 lakh without you having to do anything. That's not chance, that's mathematics.

Compounding favors patience rather than perfection, and time rather than timing.

Franklin's Legacy Lives On

More than 200 years on, Franklin's $2,000 lesson continues to ring out through classrooms, investment textbooks, and inspirational speeches. He didn't leave us money he left a recipe for creating enduring value that was timeless.

Next time you get frustrated with glacial movement forward whether it's wealth, career, or personal development keep this in mind:

"Energy and persistence conquer all things." Benjamin Franklin

Because somewhere in Boston and Philadelphia, Franklin's ghost continues to smile knowing his $2,000 didn't only make money grow… it grew wisdom.