Part 1/9:

Unlocking the Power of Compound Interest: A Key to Wealth Building

Understanding how money grows over time is crucial for anyone looking to build wealth, especially among young adults. One of the most powerful tools at their disposal is compound interest—the process of earning interest not only on the original amount invested but also on the interest accumulated from previous periods.

What Is Compound Interest?

Fundamentally, compound interest means your money earns interest on itself over successive periods. Unlike simple interest, which is calculated solely on the initial principal, compound interest accumulates and reinvests gains, allowing your investments to grow exponentially over time.