The Power of Compound Interest

Compound interest is literally interest earning interest on itself, making your money

multiply faster than you'd think. :max_bytes(150000):strip_icc():format(webp)/COMPOUNDINTERESTFINALJPEGcopy-f248781269194135aa6044e088de7af9.jpg) If you start saving 100 dollars monthly

at age 20 with a 4% return, you'll have 151,550 dollars by 65. Your twin who waits

until 50 and saves 500 monthly only gets 132,147 dollars despite investing twice as much principal.

:max_bytes(150000):strip_icc():format(webp)/compoundinterest_final-5c67da5662ba458f8d9d229ab4ca4292.png) Time literally does the heavy lifting. A 10,000 dollar loan at 5% interest

compounding annually costs 1,576 dollars over three years, but the interest accelerates each

year because it builds on previous interest. The more frequently interest compounds,

the faster your money grows. That dream car fund or vacation savings account works best