Compound Interest

Compound interest is why time is the most powerful lever in personal finance. Each period's interest joins the principal, so the base grows exponentially rather than linearly. Small, consistent contributions started early routinely outperform large, late ones.

• $100/month at 6% for 10 years ≈ $16,470 (contributions: $12,000). • $100/month at 6% for 30 years ≈ $100,450 (contributions: $36,000).

• Time matters more than amount.
• Consistency beats one-off deposits.
• The same math works against you with high-interest debt.