Taking Advantage of Compound Interest

It’s said that Albert Einstein called compound interest the eighth wonder of the world.

Well, it certainly yields wonderful results. In a nutshell, it’s when an asset earns money, which is reinvested so it earns its own money. It’s making your money work for you—every second, even while you sleep.

Compound interest is the secret to long-term earnings. Let’s say you have a thousand dollars. Put it in a savings account with 5% interest and after 12 months, you’ve earned 50 bucks ($1050). But each year, the amount you earn increases, until by the 10th year, it’s generated over $600—just by leaving it alone.