Interest: Are you
paying it or are
you earning it?
Secret #1: Uninterrupted
Compounding Interest paid to YOU.
Many of us have been on the paying side of interest.
When we borrow money for a house, car, or credit card debt, the interest is relentless. It doesn’t sleep. It
doesn’t rest. It never takes a day off. It continues to add up.
Albert Einstein is thought to have said, “Compound interest is the eighth wonder of the world. He who
understands it, earns it…he who doesn’t…pays it.”
Your path to financial security has a direct relationship to compounding interest. Compounding means that
the interest you earn also earns interest.
If you have $10,000 and it earns 5% interest in a year, you have $10,500 at the end of the year. If that
interest is paid monthly, it looks like this: