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Don't underestimate the power of compound interest from "summary" of Manage Your Money Like a F*cking Grown-Up by Sam Beckbessinger
Compound interest is like a magical money tree that just keeps growing and growing. It's the reason why investing early can make you richer than you ever imagined. The concept is simple: when you invest money, you earn interest not just on your initial investment, but also on the interest that money earns. This snowball effect is what makes compound interest so powerful. Let's break it down with an example. Say you invest $1,000 at a 5% interest rate. After one year, you'll have $1,050. But instead of just earning $50 in interest the next year, you'll earn 5% on the $1,050, giving you $1,102.50. This process continues year after year, with your money growing exponentially. The key to harnessing the power of compound interest is time. The longer you leave y...
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