Compound Interest Investing: Turning $1k into $10k

How compound interest investing works - if you invest $1000 over 30 years at 8%, your $1000 will become $10,000 easily. In this video I show you how, and the power of compound interest investing and earning interest on your interest.

Investing your money as early as possible is so important when it comes to becoming rich. By using compound interest, you can invest and watch the magic of finance do it's work! Compound interest best takes place when you have a long time horizon to allow your money to grow at a compounded rate, and this is what people are referring to when they refer to "make money on your money". In this case, your money is earning money for YOU, while YOU sleep.

The more time you give your investments, the more you are able to accelerate the income potential of your original investment, which takes the pressure off of you.

This is NOT a get rich quick scheme, too many people online are trying to convince the younger generation and my generation that it's easy to make money fast. I have not experienced this in my life ever.

What I personally love to invest in are index funds (S&P500 index fund VTI, VEU, BNDW). That's what I personally do, and that's just my opinion.

Thanks for subscribing to me, I am so happy to have 14k+ of you guys here. I will do something special and film it if we can get to 20k by next week!

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My name is Humphrey Yang, I make personal finance videos on YouTube, and TikTok where I have 510k+ followers! Make sure to sub to me on YouTube for two videos a week.

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Disclaimer: I am not a financial advisor, any investment commentary are my opinions only. Some of the products and services that appear on this channel are from companies that we have an affiliate relationship with, such as Robinhood, for which we may receive compensation when you click on links through the description.

[tn]

I learned more about investing in this 11 mins than I have in my whole life

[samcruz]

I hope your youtube account gets the recognition it deserves man . Hope your account flourishes 🙏

[daddyland]

Yeah I kept getting in and out because of playing with stocks and day trading that it made me waste a few years but thankfully I came by your videos and it finally pushed me into saving and putting the money into a savings (etfs and etc from your other videos). I liked a quote that also helped me start spending less on things that I do not need and it is by asking myself "If you can't buy it twice, you can't afford it".

[AnNguyen-expm]

Your channel is so underrated! Keep up the good work.

[Malitubee]

Stay consistent
Be disciplined
Contribute regularly

[shepherds_grandma]

Love your content. Thank you for your clear explanations. You would make an awesome high school teacher, and we need good teachers.

[justinreid]

came from TikTok, keep up the great work 👍

[mattpreuss]

Awesome videos, straight to the point, no insane clickbait titles, very informative. Thank you

[bryanmedina]

Tiktok gang is here. Love your videos & 60 seconds was not enough so here I am

[nickiv.o.]

Also, if you take money out, thinking you’re going to avoid a market downturn, your capital gains become taxable, and you lose 30% of it (depending on your tax rate)! Every time you lose some of your capital gains to taxes, you disrupt the compounding and it will affect your end results! Happy investing.

[davidmiller]

So at the age of 30 if I were to open a roth ira account and put $6, 000 a year in it and had it track the s&p500 (voo) for the next 30+ years would that be an effective strategy?

[queenqurlyques]

Here from TikTok. Your “live” today was fun! 🤘

[Ramjeezy]

Not sure why I’m confused about this still. If Spy goes up 10% and I have 100K invested, I make 10K. Does that mean I have 110K working for me on year 2? Because the principal hasn’t changed?

[bakaribelay]

Thanks for this bro I will definitely be using this a long with all the information you given about retirement plans I’m now understanding how the wealthy keep their wealth in just a few simple ways.

[oneydalefrere]

I just started watching your videos. You are truly a teacher thank you.

[Chinedu]

Does this mean that there is interest paid at the end of the hear for owning ETFs, i thought it was just the value of the ETF that can either go up or down

[marcoinvesting]

Great inspiration for me and my channel 💓

[itsmesaltax]

If I hold an S&P 500 index fund and I invested $25, 000 and I am 30% up over the years, that means my investment is now worth $32, 500. Wouldn't it make sense to sell and rebuy with the $32.5k, therefore, all future gains are then growing on the 32.5k rather than the 25k, thus creating compound interest? This is the part no-one talks about, I'm confused.

[Dekbannok]

I started investing in S&P 500 and SCHD at my 45 and hoping to retire at my 65. A bit too late, but better than doing nothing.

[thatone_daniel]

Hey! AWESOME CONTENT!! I saw your comment on Cathrin Mannings video and decided to stop by you have awesome videos!! #keepthemcoming