Part 2/8:
The instructor pointed out that the growth of an investment isn't linear; it accelerates as time goes on due to compound interest. To illustrate, imagine two scenarios: one begins investing at age 15 or 16, and the other starts at age 80. Although the earlier investor might initially see small gains, the compounding effect over decades results in exponentially larger returns. The snowball analogy was used: a small snowball rolling downhill picks up more snow with each turn, growing larger and faster. Similarly, small investments made early can grow into sizable nest eggs because the interest earned adds to the principal, generating even more interest in subsequent years.