The Power of Compound Interest
“The best time to start saving and investing is yesterday, the second-best time is today.”
The true trick to taking advantage of compounding interest is to start early and give your funds time to compound and grow.
“It’s really important to start saving and investing as early as you can. Certainly, you want to make sure you’ve got the basics covered. You want to have enough money in the bank in case of emergency and some of the basics like that. But once we start to talk about saving for various goals, it’s really important to start that as soon as possible.
One of the investing quotes that you’ve probably heard before is ‘the best time to start saving investing is yesterday, the second-best time is today,’ and that’s absolutely true because of compound interest. Every dollar you earn today snowballs and becomes a lot more dollars in the future so even adding one year, five years today, starting a little bit earlier, can make a huge difference 15, 20, 30 years down the road. Being invested for a long period of time is the number one thing you can do to build wealth.”
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