The power of Compounding Compound interest is the 8th wonder of the world. One who knows it earn from it 😉 and one who don't know just pay it 😏. Take instance of Warren buffet who had earned his 81.5 Billion dollars out of 84.5 Billion dollars when he crossed his 65th Birthday 🎂! DEFINATION _ Compounding is the mathematical phenomenon where when you invest your money 💰,that money earns returns and that return also earns a return... For example - If you start saving Rs.10,000 every month then after 10 years you will just have 12,00,000₹ /- which is too low, but instead if you had invested it then it would earn you a bigger amount 😉. If you know Compounding in your early 20s then it would be more helpful to have an rich retirement. Time ⏳ is the biggest factor for compound interest and hence considered as the most important asset. To understand more efficiently read this book to know what the compound interest is ?
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