The Compounding Impact

The true power of compound interest lies in its potential to multiply wealth over time. The longer your money is invested, the more time it has to compound, and the greater the impact on your overall returns. This is why starting to invest at a young age is so beneficial. Even if you can only invest a small amount, the key is to start early and invest consistently.

Consider this scenario: if you start investing $200 per month at age 25 with an average annual return of 7%, you would have over $525,000 by age 65. However, if you wait until age 35 to start investing the same amount with the same return, you would only have around $244,000 by age 65. That’s a difference of over $280,000, all thanks to the power of compound interest!