Understand the power of compound interest from "summary" of The Automatic Millionaire Workbook by David Bach
The concept of compound interest is one that cannot be overstated. It is a powerful force that can work for you or against you, depending on how you utilize it. Simply put, compound interest is interest that is calculated on the initial principal as well as the accumulated interest from previous periods. In other words, you earn interest on your interest. This may not seem like a big deal at first, but over time, compound interest can have a massive impact on your financial well-being. Just think about it - if you invest a certain amount of money and let it grow with compound interest over several years, the growth can be exponential. This is because as your money earns interest, that interest is added to the principal, and then the next round of interest is calculated based on the new, larger amount. The key to harnessing the power of compound ...
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