Dec '24 • General discussion
đź’ˇ The Power of Compound Interest
Hi everyone! đź‘‹
Compound interest is one of the most powerful concepts in investing. It’s the process where you earn interest on both your initial investment and the interest that’s been added to it.
Why it works:
- Earnings build on earnings: As your investment grows, the interest you earn compounds, meaning you earn interest on the interest itself.
- The earlier, the better: The longer your money has to grow, the more powerful compounding becomes. Even small investments can grow significantly over time.
- It accelerates growth: The longer you leave your money invested, the faster it can grow, which is why investing early and staying invested is key.
Example:
If you invest $10,000 at 10% interest annually for 20 years, your investment would grow to around $67,275! That's the power of compound interest at work.
đź’¬ Have you seen the effects of compound interest in your investments? Share your thoughts or ask any questions below!
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đź’ˇ The Power of Compound Interest
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I’m Mika, passionate about passive investing. I’m here to help you grow wealth and reach your financial goals stress-free with ETFs! :)
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