Eighth Wonder of the World

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

If you’re looking for that one thing to get yourself excited about saving money, investing for your retirement, you just found it, compound interest!

This latest FIscovery over at Budgets are Sexy comes with a couple of extra FInds by way of Broke Millennial and Barbara Friedberg and brings to light the power of compounding by demonstrating what a penny doubled every day for a month (31 days) would be worth – – all I can say is make sure you’re sitting down. 🙂

Sure it is a bit unrealistic in terms of what interest we can expect to get, but it does drive the point of how powerful time and a bit of discipline can have on your money.

time (t) + discipline (d) = compounded returns ($)

You do not need to make a lot to get rich, what you need to do is to start saving now, right now, get time on your side, contribute what you can monthly, and then let it ride to the end line.

Read this article on Budgets are Sexy.