Compound interest is a very powerful tool in wealth creation in a long run.

[magnus2022]

A lot of people who want to escape poverty use to neglect compound interest. Compound interest can really become very powerful financial strategy over a long time. Start saving and investing very early and before 10 years, you will become very financially secured. Let your momey start working for you now before 10 years, you will be glad you did take this advice.

 

[Starmix]

Compound interest doesn't happen in banking. It happens only in investment. Also try to read Rule 72 formulated by Albert Einstein. In Rule 72 you will know when your money doubles and when to become a millionaire in a short period of time.

 

[Suba]

That's right, compound interest will multiply your wealth, there are several best instruments to generate compound interest such as bond funds where the interest you receive will be automatically reinvested, money markets, etc. Meanwhile, the rule of 72, is a way to calculate when your investment will double, for example, if the interest rate is 8% per year then we can calculate the time needed for the investment to double is 72:8=9 years. Of course, the results of compound interest calculations will be different from the rule of 72.

 

[Augusta]

This process creates a cycle where your money grows, then the interest on that growing amount is added, and the cycle continues, leading to exponential growth over the long term.

 

[Stardom22]

For me l can say that l am now on the lookout for my journey to the financial freedom and that l would check on the compound interest feature on the investment ventures.

 

[Suba]

If we look closely, banks actually apply a compound interest system, especially on products like savings accounts, credit cards, and mortgages. This is because interest is calculated on the balance at the end of the period or monthly, rather than using a flat rate calculated on the initial deposit or balance when opening a savings account.

 

[Kross]

Compound interest when it is applied strategically would be able to lead to quicker wealth creation in the short and long run.