You’ve probably heard the saying, “The rich get richer, and the poor get poorer.” The reality is that the rich get richer because they utilize compound interest to grow their money. When you are in a position to leave your money in a high interest-bearing account for long periods of time, the more it grows.
The good news is that anyone can tap into this powerful money-making tool, and the key is understanding how it works. In this session, we break down compound interest, which is interest paid on interest , and how you can use it to build wealth and reach your financial goals.
Included in the workbook are compound interest calculators (you can also download them at WinMakeGive.com / wealth-part-6 ) and exercises to help you understand compounding. Be sure to have the red and yellow highlighter exercises from Part Two and Part Five handy and take the time to work through these real-life examples of optional or unnecessary expenses you may have, like a Starbucks coffee or Hulu streaming fee, to see how that money would compound if invested.
What I hope you take away from this lesson is knowing the value of investing and saving, versus spending, because you now understand what those dollars can become.
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