Continuing our discussion about Basic Money concepts you may not had a chance to learn and how you can brush up your personal-finance knowledge skills.
Lesson #2: Compound Interest & Starting to Save Early
Saving a small amount each day can do wonders for your portfolio in the long term. We learned in episode #1 of how you can start spending less than you make, remember, to live beneath your means. At this point, you should be able to find discretionary money in your spending and now you can start saving that money and ultimately investing.
Concept of compound interest helps not only your initial investment to earn it’s return, but also the interest you earn on your investment will be compounded and invested as well. That’s a bonus everyone should want to receive. The sooner you start saving and investing the faster your portfolio will start earning more return on it’s money. This concept is particularly valuable for younger people, who can accumulate a lot of wealth over the years by taking simple steps to start saving early.