Retirement: the power of compound interest

The Get Rich Slowly blog posted a video (above) about the power of compound interest, along with some visuals to help understand why compound interest is so cool.

Why is it so cool?

Because when you’re earning 3% or 4% on your money, it adds money to the pile, and then that pile earns 3% or 4%, and so on. It’s like a money-earning snowball running downhill.

You can try it yourself with the Money Chimp’s compound interest calculator.

Kids: start saving now, and you could get a great head-start on life!

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