Dear readers, Compound interest is often referred to as the 8th wonder of the world because of its incredible ability to grow wealth over time. Here are a few reasons why this is so: Exponential growth: Compound interest allows your initial investment to grow exponentially over time. As your investment earns interest, the interest is reinvested and begins to earn interest as well. This compounding effect accelerates the growth of your investment, leading to significant gains over the long term. Time is your ally: Compound interest works best when it has a long time horizon. The longer your money is invested, the more time it has to compound and grow. This is why starting to invest early in life can have a profound impact on wealth accumulation. Snowball effect: When you continuously reinvest the interest earned, it creates a snowball effect that builds on itself. Over time, the interest earned becomes larger and larger, making the growth curve steeper. Passive income gener...
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