Understand the power of compounding interest from "summary" of Rich Dad's Guide to Becoming Rich Without Cutting Up Your Credit Cards by Robert T. Kiyosaki
Understanding the power of compounding interest is crucial if you want to build wealth over time. Compounding interest is like a snowball rolling down a hill, gaining momentum as it goes. The more time you give it, the more it grows. Imagine you have $1,000 invested in an account that earns a 5% annual interest rate. At the end of the first year, you will have earned $50 in interest, making your total balance $1,050. In the second year, you will earn $52.50 in interest (5% of $1,050), bringing your total balance to $1,102.50. This process continues year after year, with your money growing exponentially. The key to harnessing the power of compounding interest is time. The longer you leave your money invested, the more it will ...
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