“Compound interest is the eighth wonder of the world. He who understands it, earns it…he who doesn’t… pays it.” Albert Einstein
What is compound interest? Compound interest or “the power of compounding” refers to the snowball effect that occurs when the earnings on your investments start generating returns for you. You make money not only on your original investment, but also on interest and dividends you receive each year. In other words, your money makes money. It’s the easiest money you can make. In fact, you can make money while you sleep!
Why does this matter? It causes your money to grow substantially bigger the longer it is invested. You’ve worked hard for your money, compound interest lets your money work for you!
How do I know it works? Consider this: If someone offered you $1,000,000 today OR a magic penny which would double in value each day for the next month, which would you choose? If you chose the million dollars you would have missed out on a lot of easy money. That magic penny that doubles each day would be worth over $10 million at the end of the month. That’s the power of compounding! Invest today and put that power to work for you. And please let us know if you find any of those magic pennies lying around