The Power of Compound Interest

Compound interest turns your money into a money-making machine. It's literally earning

interest on your interest, and it's the secret weapon for building wealth young.

:max_bytes(150000):strip_icc():format(webp)/COMPOUNDINTERESTFINALJPEGcopy-f248781269194135aa6044e088de7af9.jpg) Here's how it works. You put 100 dollars in a savings account at 5% interest.

Year one, you earn 5 dollars. But year two, you earn interest on 105 dollars,

not just your original 100. That extra interest keeps stacking. :max_bytes(150000):strip_icc():format(webp)/compoundinterest_final-5c67da5662ba458f8d9d229ab4ca4292.png)

Start saving 100 dollars monthly at age 20 with 4% returns. By 65,

you'll have over 150,000 dollars from just 54,000 invested. Wait until 50 to

start? You'll only have 132,000 despite investing 95,000. Time literally multiplies