The Power of Compound Interest

# Compound Interest: The Secret to Building Wealth Without Lifting a Finger Compound interest

is literally free money making more money while you sleep. It's the difference

between retiring at 65 versus 45, and most people have no idea how powerful it actually

is. Here's how it works. You save $100 at 5% interest. Year one,

you earn $5. But year two, you earn interest on $105, not just your original

$100. That's $5.25. Year three, you earn interest on $110.25.

Your money literally multiplies itself. Let's say you want to save for a dream vacation to Japan.

You're 20 years old and start putting away $100 monthly in an account with 4% annual interest,