Many people are discouraged from saving because they don’t believe that they have enough to save. But this is a mistaken belief that will prevent you from ever being successful at saving. Regardless of how much you earn and how much you save, it is possible to accumulate a substantial amount of savings. This is possible through the miracle of compounding.
Compounding is what makes saving only cents a day a worthwhile effort. To compound means to intensify, magnify or to increase. When used in financial terms, compounding means to increase exponentially through the addition of interest. Compounding is dependent upon 2 main factors – amount of time and rate of interest earned.
Compounding is more powerful the longer the time period that you save.
Compounding is what makes saving only cents a day a worthwhile effort. To compound means to intensify, magnify or to increase. When used in financial terms, compounding means to increase exponentially through the addition of interest. Compounding is dependent upon 2 main factors – amount of time and rate of interest earned.
Compounding is more powerful the longer the time period that you save.