Understanding Compound Interest

Compound interest is interest calculated on the initial principal and accumulated interest from previous periods. Albert Einstein allegedly called it "the eighth wonder of the world," noting that "he who understands it, earns it; he who doesn't, pays it."

The Power of Regular Contributions

Making regular monthly contributions dramatically accelerates wealth building. Even small amounts, invested consistently over time, can grow into substantial sums thanks to compound interest.

Tips for Maximizing Compound Interest

• Start investing as early as possible - time is your greatest asset
• Make regular contributions consistently
• Reinvest dividends and interest payments
• Choose accounts with more frequent compounding periods
• Minimize fees that can erode returns