The Power of Compound Interest

# Compound Interest Story for TikTok Compound interest is literally free money growing on

top of your money. It's interest calculated not just on what you originally saved, but on all the interest

you've already earned too. :max_bytes(150000):strip_icc():format(webp)/COMPOUNDINTERESTFINALJPEGcopy-f248781269194135aa6044e088de7af9.jpg) Here's why this matters.

Say you're 20 and start saving 100 dollars monthly for that dream vacation fund.

With 4 percent interest compounding monthly, by age 65 you'd have 151,550 dollars. Your actual contributions?

Only 54,100 dollars. That's nearly 100,000 dollars in free growth. :max_bytes(150000):strip_icc():format(webp)/compoundinterest_final-5c67da5662ba458f8d9d229ab4ca4292.png)

Now imagine your friend waits until 50 to start. They invest 5,000 dollars upfront

then 500 monthly for 15 years. Total invested: 95,000 dollars. By 65 they only