Compound Interest Explained in One Minute

A lot of savers underestimate the power of reinvesting, they don't understand just how much of a difference compound interest makes.

Can you simply spend the interest on awesome products/services without reinvesting? Sure but there's a price to pay. The effects of compounding seem underwhelming if you only look at them over a cycle or two but in the long run, the difference between the portfolio of someone who leverages the power of compound interest and someone who doesn't is huge.

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[hacatan]

This is the type of stuff they need to teach kids in highschool.... Same as budgeting....

[SNCHEZ]

Congratulations John, you played yourself.

[thomasanderson]

Straight to the point and makes sense. Thanks bro.

[spyroskentroskentros]

The problem is that with inflation, money just decreases in value which is why investing might be better

[joser.romero]

Short and succinct, I love this . Thank you

[breannagraham-tpc]

Whew! Super simple explanation! I love this!

[OneMinuteEconomics]

If you liked this video, I think you'll love my personal finance book (Wealth Management 2.0) that has been written specifically for today's ultra-complex investment landscape and is available over at:

[hacatan]

Well that's was better explained than other videos.... Thanks man...

[aaravinfoways]

bro my teacher confused me in this topic but thanks to you i understood compound interest so easily

[kaydiankerr]

thank you, this video has given me insights and clarity. I was struggling to understand all em books. Appreciated

[MyFunZone]

Your videos are awesome, dude! What program do you use to make the animations? :)

[AlyssasBakery]

How would interest be compounded daily though? In the instance of a CD?

[miguelgayoma]

On point wow, some videos were complicated.

[minioncrew]

way too fast for my brain. i wouldn't mind if the vid was 5 mins. I should be able to understand

[farisdaniel]

I really like this video because it easy to be understand

[georgebodegon]

If only banks actually give 10% interest rates for savings

[Fisme]

This video is good but lacks the most important part: where are you going to find a bank that offers you 10% of compound interest a year??

[procrastinatingproductivel]

nothing caught my little brain but I decreased the playback speed WELL EXPLAINED... THANK YOU!!!

[armandcuevas]

It would have been good to compare John to simple interest