Did you know that compounding interest is also applicable to your progress? We often hear compounding interest in the finance aspect. It is interesting to know, however, that this also applies in our life.
Albert Einstein once said, “Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn’t, pays it”. If this will be applied to your finances you can become rich.
What is Compound Interest?
In finance, compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest. It is the result of reinvesting interest, rather than paying it out, so that interest in the next period is then earned on the principal sum plus previously accumulated interest.
In investment, compound interest is more profitable than simple interest. However, if you are applying for a loan with compounding interest, you might want to consider it very carefully before taking it.
Compounding Interest in Life
Compounding interest not only works in money but also in life in general. You can do compounding knowledge and become wiser with time. How does this work? If you set a goal for yourself to be 1% wiser each day. When you are 1% smarter when you go to bed, think how much you would improve in a year. Remember, that there is power in small gains.
So, what are you waiting for? Invest in yourself now and reap those compounding interests in the future. Let us help you, go here.
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