Wealth Building

The Magic of Compound Interest

Albert Einstein famously referred to compound interest as the "eighth wonder of the world." While simple interest only pays you based on your initial deposit, compound interest means that the interest you earn begins to earn interest on itself. Over time, this creates a snowball effect that is the foundational secret to building wealth.

How to use the Rule of 72

If you want a quick mental shortcut to see how fast your money will grow, use the Rule of 72. Simply divide 72 by your expected annual interest rate. The result is the number of years it will take for your initial investment to double in value without adding another dime!