How Compounding Makes you Rich #financialfreedom #finance #investing

21 Jun 2023

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Start with $10,000 and add $300 to $2,000 monthly at 8% annual returns. The speaker shows how the Compound app demonstrates that most gains happen late in the curve, so time in the market matters more than how much you add each month.

I'm going to show you this really cool app that will calculate compound interest and show you how powerful it is. So you can download the Compound app in the App Store. It's free. And let's start with a $10,000 account. And we use the 8% annual return, which is based on the historical average for the S&P 500. Now, if you put in $300 a month, it's pretty cool to see over 20 years how that grows to equal a huge number. So let's just say what happens if I put in $500 a month or even 1,000? Right. Or you're able to increase your income and now you can put in $2,000 a month? The gains get pretty crazy. And now this is the coolest part. If you were to take the duration and make this longer, you'll see a massive change because the biggest gains happen later in the growth curve. So check it out and play with the numbers, because you'll see that small investments that are consistent over time compound into massive returns.