COMPOUND INTEREST - THE EIGHTH WONDER OF THE WORLD
March 14 marks the birth anniversary of renowned physicist Albert Einstein. While the legend is celebrated for his contribution to science, believe it or not, he also has a connection to the wonderland of investment. The seven wonders of the world are known globally today. But decades ago, Einstein regarded compound interest as the eighth wonder of the world. After earning and losing money in the Stock Market, he also said, “He who understands it (compound interest), earns it, he who doesn’t, pays it.”
Understanding compound interest
Compound interest means you not only earn returns on the principal money that you invest but also get to enjoy returns on the interest income that keeps adding to your principal. This process continues until you withdraw your money. In simple terms, with compound interest, you can grow your wealth by just staying put in your investments.
What you need to do to benefit from the power of compounding?