The Power of Compound Interest

Compound interest is literally free money making more free money. Your money earns

interest, then that interest earns interest too, creating this snowball effect that grows

faster every year. Think of it like this: you save 100 dollars a month starting at 20 years

old with a 4 percent return. By 65, you have 151,550 dollars.

Your twin waits until 50, saves way more per month, but only ends up

with 132,147 dollars. Starting early is the ultimate cheat code. The math is simple:

your initial amount times one plus the interest rate, raised to the number of periods.

More compounding periods means more growth. Daily compounding beats monthly,