The Power of Compound Interest
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# Compound Interest Makes Your Money Multiply Without You Lifting a Finger Compound interest
is literally free money growing on top of your money. Think of it like a snowball rolling
down a hill, getting bigger and bigger as it picks up more snow. :max_bytes(150000):strip_icc():format(webp)/compoundinterest_final-5c67da5662ba458f8d9d229ab4ca4292.png)
Here's the wild part. If you save 100 dollars a month starting at 20 years
old with a 4 percent return, you'll have 151,550 dollars by 65. Your actual investment?
Only 54,100 dollars. That's 97,450 dollars in free money just from compound interest. But wait,
there's a plot twist. Your twin waits until 50 to start investing. They put in 5,000
initially, then 500 monthly for 15 years. Same 4 percent return. By 65,
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