The Power of Compound Interest

Compound interest is basically interest earning interest, and it's the secret weapon for building

wealth that most people ignore. <break time="1.0s" /> When you save money, you earn interest on your initial

deposit, but then you also earn interest on that interest, creating a snowball

effect that accelerates over time. Here's a real example. Say you're 20 and start saving 100

dollars monthly at 4% interest for your dream vacation fund.<break time="1.0s" /> By 65, you'd have over

150,000 dollars, <break time="1.0s" /> but you only put in 54,000 yourself. Your twin waits until 50,

saves 500 monthly for 15 years at the same rate, and ends up with just 132,000 despite

investing 95,000. :max_bytes(150000):strip_icc():format(webp)/compoundinterest_final-5c67da5662ba458f8d9d229ab4ca4292.png) The more frequently interest compounds, whether daily,