Compound Interest. Your investing Jet Fuel.

 

 

As you learn more about saving & investing, it helps to understand a very powerful growth tool for your money: Compound Interest.

Taking advantage of compound interest is the easiest and most effective way to maximize the growth of your savings & investments over time. It’s like adding jet fuel to your effort by earning interest both on your original money AND interest on the interest you are earning along the way.

The secret to maximizing the impact of compound interest is to start saving & investing as early as possible in your life. The longer your money is compounding, the more it will grow.

Consider this example: If you start investing $100/month at 20 years old with a 5% annual return, by age 70 you will have contributed $60,000—but your account could be worth over $265,000, thanks to the power of compound interest.

So the key takeaway? Start saving and investing as early as you can, so your new best friend—compound interest—can help grow your money and build your financial foundation.

As always we’re here to answer any questions you might have.

 

Source of Data = https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator