It looks like another $1,200 stimulus check is coming straight to your mailbox. But what if we could switch that 1 and 2… and add a zero? Would you like to turn that $1,200 check into $21,000?

While it has yet to be signed into law, the next stimulus package seems almost guaranteed to include another $1,200 stimulus check to most Americans.

So if you got $1,200 under the CARES Act, you’ll probably get another $1,200 soon. $1,200 is a nice chunk of change. But it’s not exactly life-changing money.

What if that $1,200 COULD be life-changing money?

What if you could switch the 1 and the 2… and add a zero… turning the $1,200 into $21,000?

So if that $1,200 check hits your account in the next six weeks or so, PLEASE remember what I’m telling you and think hard before allocating that capital. If you spend it, that $1,200 turns into $0. But if you allocate it properly, you could turn that $1,200 into almost 20 TIMES MORE MONEY.

Let’s dig in.

The secret to turning that $1,200 into $21,000 is the same secret that applies to growing any other money. It comes down to one word. Compounding.

We did a video on compounding back in May, so make sure to watch that here.

Albert Einstein is believed to have said, “Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it.” Believe me, you’d rather be the one earning it than paying it. It’s an incredibly powerful force that can positively and radically change your life. But you have to understand and harness it.

One of the great things about living in America is, Americans have access to the best capital markets on the planet. The US stock market is by far the largest in the world. And the US economy is by far the largest in the world. Moreover, Americans can easily open a brokerage account and buy stocks for free. (Check out our video on how to start investing with $20 for more on that.)

Compounding is practically begging you to take advantage of it.

However, you have to fight the urge to spend it. Which also means you have to set up your lifestyle in a way that promotes saving and investing as a natural byproduct of good habits. That said, a lot of people are struggling right now. Jobs have been lost, health concerns have arisen, and things can quickly get out of control.

I totally get it.

But if you’re one of the fortunate ones out there who is still working and in a good financial position, this stimulus check is a windfall that could go from a nice chunk of change to a rather significant amount of money. You simply have to do the Einstein and earn that mystical force of compounding.

Let’s say you invest that $1,200 into high-quality stocks earning nothing more than the average long-term rate of return of the US stock market (about 10%/year nominally). And let’s assume you keep that $1,200 invested for the next 30 years. Investing $1,200 at a 10% rate of return for 30 years nets you $20,939.28.

Yep. That’s almost 21 grand. We switched the 1 and the 2… and added a zero in there.

That’s almost 20 times the money you started with. Yet that’s not even assuming you add another dime over the next 30 years.

I’m talking about investing only that $1,200 and compounding it.

Now just imagine what’s possible if you’re repeatedly investing thousands of dollars every single year. Best of all, you could do even better than 10%/year. How? By investing in high-quality dividend growth stocks.

I invest in and make videos on high-quality dividend growth stocks. Think stocks like Johnson & Johnson (JNJ), Apple Inc. (AAPL), and Realty Income Corp. (O).

Per Ned Davis Research, from 1972 to 2019, dividend growers and initiators vastly outperformed an equal-weighted S&P 500 index.

Shouldn’t be a surprise.

After all, the significant majority of the S&P 500’s total return over the last 50 years has come from reinvested dividends.

As for which stocks to possibly buy, make sure to follow our channel.

We’re regularly putting out videos on high-quality dividend growth stocks to consider. Of course, there’s also my own personal portfolio, which you can also take a look at.

Either way, do consider doing the Einstein and putting that $1,200 to work for you for the next few decades.

Take a free check and turn it into life-changing money. And consider doing this repeatedly, over and over again, with any other spare money you have. Let compounding go to work for you and make you rich.

— Jason Fieber

P.S. This six-figure portfolio, which I call the FIRE Fund, generates enough passive dividend income for me to live off of. It allowed me to retire in my early 30s. I’ve made my portfolio entirely accessible over at Patreon – and I post alerts there whenever I buy or sell a stock.

I put my money where my mouth is and am often invested in the same high-quality dividend growth stocks that I make videos on. Over the years, I’ve heard from thousands of investors who have been profiting from many of the same exact stocks I own. So if this sounds like something you think you could benefit from as well, check out this link to see my portfolio and start getting my buy and sell alerts.