Take advantage of compound interest from "summary" of The Barefoot Investor by Scott Pape
Compound interest is like a magical money-making machine. It's like planting a seed in the ground, and then watching it grow into a money tree. The longer you leave it alone, the bigger it gets. How does it work? Well, you earn interest on your original investment, and then you earn interest on that interest. It's like a snowball rolling down a hill - it starts off small, but it gets bigger and bigger as it goes along. The key to taking advantage of compound interest is to start early. The earlier you start, the more time your money has to grow. Even a small amount invested now can turn into a substantial sum down the track. And the best part is, you don't have to do anything - you just sit back and let the magic of compound interest do its thing. But here's the catch - compound interest works both ways. If you're in debt, compound interest can work against you. That's why it's important to pay off your debts as quickly as possible. Every dollar you pay off now saves you even more in the long run, because you're not only paying off the original debt, but also the interest that has accrued on that debt. So, whether you're investing or paying off debt, the key is to take advantage of compound interest. It's like a powerful force that can either work for you or against you, depending on how you use it. So start now, and let the magic of compound interest work its wonders for your financial future.
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