14/11/2022
📈What is compound interest?📈
Albert Einstein famously said: “Compound interest is the 8th wonder of the world. Those who understand it from there will make money, those who don't risk will have to pay for it."
Warren Buffett also once shared the reason he is so rich: "My wealth is a combination of living in America, good genes and Compound interest."
It can be seen how important compound interest can be for influential people to appreciate.
Compound interest is the profit earned from business investment. It is then pooled together with capital and used that money to continue to invest, generating higher interest rates. The more capital deposited, the higher the profit in the following periods.
📊The power of compound interest in investing📊
Compared to simple interest, compound interest has much more magical power giving us a higher return on the same investment.
The longer the investment period, the more profit you will receive, even if the interest rate is not really high or the initial amount is not large, but it is time that will change your wealth and make it more than. Therefore, you should start saving and investing as soon as possible to make the most of the power of compound interest.
Share a little more: If you are thinking that accumulating money to invest is difficult and you think you are almost impossible to achieve. Look at the results every day. You just need 1% better every day and compounding will lift you up and make you do what you thought you couldn't do.
This is purely math based and proven
If you get into the habit of saving 1% of your salary every day. Then 1*1.01^365 = 37.7
That means your money each year will be 37.7 times higher than now. With a savings of 1% of your salary everyday only.
Seriously, try applying it every day. 1% is what you can't see but after 1 year, 2 years, 5 years it will definitely show you.
The key here is EVERY DAY. Only for saving every day the compound function can be affected and you will eventually be rewarded for this persistence.
📋How to apply compound interest?📋
1. Time:
Start accumulating and investing as soon as possible right now. Time indeed plays a very important role in increasing the power of compound interest. The longer the period, the higher the profit.
2. Interest rate
Taking advantage and choosing the right investment channel with high interest rates is one way to create the success of applying compound interest.
3. Invest regularly:
Make a habit of investing regularly every month. The power of saving 1%. Do you remember? Just 1% a day and compound interest will lift you up.
4. Persist
The final piece that creates the magic power of compound interest is your own perseverance. You need to try your best to make your money grow. Be very calm and follow through, because at first the profit will certainly be insignificant but over time it will become huge at the end of the investment period.
What is compound interest?📈
Albert Einstein famously said: “Compound interest is the 8th wonder of the world. Those who understand it from there will make money, those who don't risk will have to pay for it."
Warren Buffett also once shared the reason he is so rich: "My wealth is a combination of living in America, good genes and Compound interest."
It can be seen how important compound interest can be for influential people to appreciate.
Compound interest is the profit earned from business investment. It is then pooled together with capital and used that money to continue to invest, generating higher interest rates. The more capital deposited, the higher the profit in the following periods.
📊The power of compound interest in investing📊
Compared to simple interest, compound interest has much more magical power giving us a higher return on the same investment.
The longer the investment period, the more profit you will receive, even if the interest rate is not really high or the initial amount is not large, but it is time that will change your wealth and make it more than. Therefore, you should start saving and investing as soon as possible to make the most of the power of compound interest.
Share a little more: If you are thinking that accumulating money to invest is difficult and you think you are almost impossible to achieve. Look at the results every day. You just need 1% better every day and compounding will lift you up and make you do what you thought you couldn't do.
This is purely math based and proven
If you get into the habit of saving 1% of your salary every day. Then 1*1.01^365 = 37.7
That means your money each year will be 37.7 times higher than now. With a savings of 1% of your salary everyday only.
Seriously, try applying it every day. 1% is what you can't see but after 1 year, 2 years, 5 years it will definitely show you.
The key here is EVERY DAY. Only for saving every day the compound function can be affected and you will eventually be rewarded for this persistence.
📋How to apply compound interest?📋
1. Time:
Start accumulating and investing as soon as possible right now. Time indeed plays a very important role in increasing the power of compound interest. The longer the period, the higher the profit.
2. Interest rate
Taking advantage and choosing the right investment channel with high interest rates is one way to create the success of applying compound interest.
3. Invest regularly:
Make a habit of investing regularly every month. The power of saving 1%. Do you remember? Just 1% a day and compound interest will lift you up.
4. Persist
The final piece that creates the magic power of compound interest is your own perseverance. You need to try your best to make your money grow. Be very calm and follow through, because at first the profit will certainly be insignificant but over time it will become huge at the end of the investment period.
