How To Get Rich With Compound Interest

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What is compound interest?

Albert Einstein famously referred to compounding interest as the eighth wonder of the world.

We're all familiar with the concept of earning interest. I'm assuming most of you watching this video right now have had either a savings or checking account that earns some amount of interest.

Let’s say we have $1,000 in the bank, and the bank pays us a 4% annual percentage yield on our money.

These interest payments are usually paid out monthly, but for the sake of this quick example, we would earn $40 in interest over a 12-month period.

If we were to leave that $1,040 in our account and continue earning 4%, we would earn an additional $1.60 from that initial interest payment of $40 by doing nothing at all.

This is where the magic of compound interest starts. It is the process of growing our money exponentially.

That extra $1.60 may not sound like much, but over time and with big enough numbers, compounding can deliver incredible results.

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WHO AM I? 👇
If we haven’t met before - 👋 I’m Marko, and I’ve been investing since 2006, and I got my finance degree in 2010. My mission is to provide my viewers with actionable content that enables them to create financial wealth. My videos reflect my real-world experience as a real estate investor, stock market investor, student of finance, and entrepreneur.

DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments.

AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning, at NO additional cost to you, I may earn a commission if you click through and make a purchase and/or subscribe. However, this does not impact my opinion.

⌚️Timestamps:
0:00 - Intro
0:27 - Compound Interest Example
2:03 - Compound Interest Formula
3:32 - Fun Experiment
5:50 - 3 Levers Of Compound Interest
8:00 - My Thoughts
10:07 - LOL

[WhiteBoardFinance]

Use code "COMPOUND20" for a 20% discount.

WBFU Includes:
🎥 4 Full-Length Courses (Stocks, Real Estate, Budgeting, Increasing Income)
🧠 Over 50+ exclusive videos, and new ones every week
📊 Full transparency into my portfolio (every buy and sell I make)
💬 Access to our private community and live chat with 100+ members
❓ Weekly Q&A Discussion and Livestream with Marko
🛠 Exclusive Tools & Spreadsheets
👨‍🔬 Monthly Guest Expert Livestreams

[traviswingo]

“I have daughters” 😂 Markos humor is underrated.

[AnnaFed]

Building steady income is quite difficult for newbies... <<thanks to John Desmond Heppolette for improving my portfolio.

[richhands]

My three favorite channels: Marko - WhiteBoard Finance, Stock Brotha, & How Money Works. Make my week complete! 🔥 🔥 🔥

[visualcontrast]

@1:12 "This is where it gets interesting" LOL! Interest-ing.

[jacquelinecorrig]

Great video, one that folks really need to watch. I have really experienced the power of compounding, I' m 50, retired a while at 45. 1 have 35% of my capital invstments in an IRA. 25% in index funds, and the balance spread across other investment accts. in cumulative of over $ 5M. I receive income from my rental properties too. Zero debt and all is going accordingly. My financial consultant has been patient and has done a wonderful job for me throughout the years.

[RayFreddie]

Compound interest is truly amazing! I've been diving deep into personal finance lately, and it's mind-blowing how much of a difference it can make in building wealth over time.

[techsir]

Thank you Marko for continuing to provide good content that is clean and strait forward. I have un-subbed from many other channels after a lot of horse crap. You are probably one of the best. Keep it up and have a great day.

[Maxifreegor]

Marco. I have a pension and an annuity through work. I was wondering if you could do a video explaining one or both. Love the videos! Keep up the good work!

[mlupxfb]

The " I have daughters" killed me LOL😂

[Answers]

Selling options, I am making about 1% gains a week with Robinhood. So, effectively, I am compounding my money at a much faster rate than a bank will pay interest on deposits. Great video Marko.

[oOBlahBlahOo]

With the way the stock market is and has been recently do you think it would in this case or in any case make sense to pull money from a brokerage account to put into a CD with the high rates that are being offered (and assuming the money wouldn’t be needed before the term is up) or do you think it’s always best to leave the $ in the stock market no matter what?

[barrettstreeter]

I’ve actually never understood compound interest somehow, so thank you!

[moneycessity]

Classic magic penny example! I love it.

[noypitelekom]

yay Marko the POGI.... by end of this year you will have a million subs... YAY

[lucyrocha]

This helped me understand YTM more than how my professor explained it. How about a video on asset valuation or capital budgeting? 😅 Like always here for the financial education, staying for the sense of humor 😂

[watchin-stoof]

Many will be wondering how it ever existed over the next few years of zero gains or loses

[p_Splint]

Hey Marko always enjoy your content. In the example you showed us, is it compounding annually? Would monthly/daily compound give better returns? Thanks

[scammacs]

"This is where it kinda gets INTEREST-ing" 🤓

[foodmens]

That intro lmaooo Marko you wild for that dawg XD