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Compound interest is a powerful tool from "summary" of The Psychology of Money by Melody Jefferson,Morgan Housel
Compound interest is the idea that the interest you earn on an investment can itself earn interest. It's the concept of money making more money. And it's a concept that has the potential to significantly impact your financial future. When you invest money and earn interest on that investment, the following year you not only earn interest on the principal amount you invested but also on the interest you earned in the previous year. This compounding effect can have a snowball effect on your wealth over time. The power of compound interest lies in its ability to grow exponentially. As time goes on, your money can grow at an increasing rate, as the interest you earn on your investment continues to compound. This can result in a substantia...
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