Wanna know the secret??

I’ll let you in on a simple concept that you need to memorize.. Money Makes Money! That’s it! Boom! Now you know! The earlier you start investing, the more money you will have later in life. Compound interest can generate massive wealth over a long period of time. What is compound interest you ask?

 “Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest. It is the result of reinvesting interest, rather than paying it out, so that interest in the next period is then earned on the principal sum plus previously accumulated interest.” Wikipedia 

So here is how it works: You save up money, invest your money into the market, and generate a return. Let's say for instance you earned a nice solid return of 8%. If you started with $10,000, over 30 years that $10,000 would be worth a little over $100,000! Now lets say you are really young and aggressive, and can earn an amazing 11% return over that timeframe.. your $10,000 would be over $220,000! Now what if you were able to pull off a Buffett, and average 20.9% return, that $10,000 start would be worth almost $3,000,000! See how exciting this can be? Now it is not realistic to think that you would be able to average over 20% for 30 straight years, but the point of this is to show just how much money can grow if you have it invested wisely. And these numbers are assuming you never contribute anything additional over the years. Contributing $1,000-$2,000/year change the future value tremendously. 

Albert Einstein famously stated: “Compound interest is the eighth wonder of the world. He who understands it, earns it... he who doesn’t... pays it.”

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