Understanding compound interest helps you make better financial decisions – it works for you when investing and against you when borrowing.
With investing, your money earns returns, and those returns earn returns, creating exponential growth over time.
The earlier you start investing, the more time compound interest has to work its magic.
With debt, compound interest means you pay interest on the principal plus previously accumulated interest.
High-interest debt like credit cards can quickly become overwhelming due to compounding.
Pay off high-interest debt as quickly as possible while investing for long-term goals simultaneously.
Albert Einstein allegedly called compound interest “the eighth wonder of the world” – harness its power wisely.
The Power of Compound Interest: How it Works, the Good & the Bad
