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Investing isn’t just about what returns you can see immediately; it’s also about compounding interest. This mathematical principle shows how your money can grow substantially over time through reinvestment of returns. An average of 9% annual return on your investments can significantly increase your wealth as your profits generate their own profits.
To illustrate, if you invest €10,000 at 9%, the second year will yield returns based on not just your initial investment but also on the returns from the previous year. Over two decades, this simple principle can manifest into a significant financial portfolio.