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Understanding the power of compound interest is crucial for building wealth from "summary" of Playing with FIRE (Financial Independence Retire Early) by Scott Rieckens
Compound interest is a mighty force that has the ability to work for us or against us, depending on how we choose to harness its power. When we have savings or investments that earn interest, that interest gets added to the principal amount, making our money grow faster over time. It's like a snowball rolling downhill, picking up more snow as it goes, getting bigger and bigger with each revolution. By understanding how compound interest works, we can see the enormous impact it can have on our financial future. The key is to start early and give our money as much time as possible to grow. Even small contributions can turn into substantial sums over time, thanks to the magic of compounding. The earlier we start investing, the more time our money has to grow exponentially. If we start investing early and ...
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