The Power Of Compound Interest: How To Grow Exponential Wealth

The Power Of Compound Interest: How To Grow Exponential Wealth

In the realm of personal finance, few concepts possess the amazing potential of compound interest. Often hailed as the "eighth wonder of the world," compound interest is a phenomenon that can work wonders for people who harness its power wisely. By understanding and leveraging the power of compound interest, one can set themselves on a path towards financial prosperity, long-term wealth accumulation, and a secure future. In this video, we’ll explore the essence of compound interest, its mechanisms, and the incredible benefits it offers to those who embrace it.

[JoseRojasYT]

The power of compound interest sure is a beautiful thing.

[sandra]

Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. A trader made over $350k in this recession influenced market.

[henghistbluetooth]

As a 51 year old - this is something I wish I had truly understood when I was 25. At least now my 10 year old son will understand it - he already has a pension and an ISA - so hopefully in his later life he’ll benefit from my at least understanding this later in life :(.

[KS_]

Gotta love a Chris Invests video on a fine Sunday!

[Financial-Education]

The seventh wonder of the world, awesome video.

[tom]

You touched upon it briefly but I think it would be prudent to put more into explaining the compounding effects of fiat devaluation as well as that is the opposite side of the equation. As we go into a devaluation cycle and sovereigns devalue in order to bail themselves out of their unsustainable debt burdens there is every chance that that will compound quicker than and effects of compounding returns on the income side.

[martymar]

I’ve been investing in the stock market threw my 401k with Sherwin Williams and I’ve been contributing 18% for 5 years. This year I took it down to 10% due to this economy which I didn’t want to do at all! But this year is the first year we’re I’ve seen my money grow in rapid pace thanks to compounding interest and it’s awesome! I hope to bring it back up to 18% or higher! I love your videos bro! Your right when it makes you feel much better about yourself knowing your money is working hard for your future!!!

[TwinJalanugraha]

What amazes me the most, is why aren't more people subscribe to you.

[brucestiles]

Here is an illustration of why it is important to save as much as possible as early as possible.

Joe graduates from college at Age 22 and lands a good-paying job. He continues to live at a college student’s standard of living for two years, during which time he socks away $10, 000 per year into a Roth 401(k). Joe invests in a low-cost broad-based index fund and leaves the $20, 000 invested until he retires at Age 67. Over this period, Joe’s investment averages a nominal return of 10% per year, with an average inflation-adjusted rate of return of 6% per year. (Think of his investments as $10, 000 for 44 years and an additional $10, 000 for 43 years.) At Age 67, the value of Joe’s two-year investment is over $252, 000 -- *TAX-FREE AND IN TERMS OF TODAY’S DOLLARS.* Joe could buy a retirement home using just those proceeds.

[Cyber_Jar]

The last century of stock market growth has happened alongside constant population growth with more new workers and more new consumers year on year.

So far I am yet to see anyone comment on the future of this theory giving an aging population with a decreasing birth rates, so more dependants with less workers to support them. Inheritance may fund some growth however Inheritance rax is increasing across the developed world so less of that money than people think will go into the hands of people who will invest and spend. As population shrinks the workforce will shrink faster, taxes will go up on the smaller workforce to fund the retirement of the growing amount of retirees.

Compound interest growth over a lifetime is in no way as certain a possibility now in the 21st as it was in the 20th century.

[tonycrabtree]

stock funds do not compound, if they do not share dividends regularly allowing more quantity to be added by those dividends alone. They simply grow. That's it. If you don't have a higher quantity of something it didn't compound. Take a classic car, like ta 53 corvette. While it did increase in value and will continue to do so, it clearly didn't compound. You still have only 1 car. It's not like in 2023 you have 2 or even 3 1953 Corvettes because you simply held onto the original 1953 Corvette you purchased. Yes, it's worth more, but it didn't compound.

[yunus]

i want to ask something, how do you combine sound and vision, I would be glad if you answer, thank you

[debbytv]

Thanks for sharing❤well I have been earning passively recently due to the help of Coach Chris Insights which I'm ok with

[WW-]

I guess I need to reinvest my interest I earned then? Or take it out to pay my water bill? $150 this month I earned!