The Power of Compound Interest: Start Early, Save More

Compound interest is often called the “eighth wonder of the world” because of its ability to grow wealth over time. Unlike simple interest, which is earned only on the original amount, compound interest accumulates on both the initial investment and the interest already earned.

The earlier you start, the greater the effect. For example, someone who invests $200 a month beginning at age 25 could retire with more than double the amount of someone who begins the same plan at age 35—even if they contribute for fewer years. Time is the most valuable factor.

The takeaway is clear: don’t wait until you “feel ready” to invest. Start small, stay consistent, and let time do the heavy lifting. Even modest contributions can grow into substantial wealth when compounded over decades.

Compound interest isn’t magic—it’s math. But it rewards patience and consistency more than anything else.