The Power of Compound Interest

START INVESTING FOR FREE:

Compound interest is the 8th wonder of the world. He who understands it, earns it. He who doesn't, pays it. And according to Albert Einstein it is the most powerful force in the universe.

But what is compound interest? How does it work? If the power of compound interest is really a thing, then why don't I have more money in my bank account? What's the miracle of compound interest ever done for me?

Wow... that's a lot of questions. Compound interest is a financial concept that illustrates the time value of money. It basically shows what happens when you're money starts making you money as the interest gets compounded on the principal investment. As for the rest of your questions, I refer you to the third sentence of this description.

In today's video I talk about the miracle of compound interest and what it can do for you!

If you enjoyed this video you can check out some of my other videos at the links below!

-~-~~-~~~-~~-~-
Please watch: "The Budget That Pays You First | Reverse Budget Explained | Budgeting For Beginners"
-~-~~-~~~-~~-~-

[venictos]

New to your channel, i really enjoy your presentation style!

[blancavillaalva]

My son gets pocket money every week, he’s 8.
I tried to explain this to him.. I failed.
I wish you could come with some brilliant idea like your videos.
Thank you for your videos.. they really make a difference!

[Libragirl]

Hi Daniel! I came across your videos today and have watched like 10 of them and subscribed! Thank you and I love it! Learning so much.
Hope you can do more videos about saving, which is better: 401K, Roth, CD, Mutual funds, just savings, stocks. Which would account be better for compounding? Which should I do first then order to save wisely?

[Resonant]

Really loving this channel!
I have an idea for a video if you need one. If buying a house how much should your mortgage to investment ratio be? Say if you were investing your savings but then decided to buy a house and the mortgage is going to take a part of that budget.
Thanks a lot for these videos. They are really going to help my future

[hardcre]

Wtf 4.25% interest rate?! Isn’t that loan from the government? Here in Sweden we pay 0.1% interest rate on our student loans with small payments monthly when we get a job. If you die it’s cancelled. With 4.25% you can pay interest without paying of the loan for a looong time. Crazy...

[happyandhealthy]

accounting is the most powerful interest

[AlternativeLine]

i stopped watching when he said u should pay ur student loans.
First things first if you pay 3-4% interest and by investing you can make 10-15% how does it make sense to pay up student loans as fast as possible?

[josephreagan]

If Jack and Jill don't have kids, they may have more money, but they will likely have far less happiness.

[somerandomperson]

$1, 000. 10% alpha over the market. Wait for 1/4 of a millennium. Congrats. Your great-grandchildren x5 now have $20T in today's money. AMERICAN CAPITALISM!!!