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Our doubts are traitors and make us lose the good we often might win by fearing to attempt

     The Power of Compound Interest and Why It Pays to Start Saving Now.


Have you ever wished that you could have more money, without all the effort?

Or are you concerned you won’t have enough saved for retirement or your child’s education?

Luckily, there’s actually a simple way to accomplish those things if you’re willing to learn how to put your money to work for you. It’s called compound interest, and it can help you exponentially grow your wealth.


                                                What Is Compound Interest?

When people think of interest, they often think of debt. But interest can work in your favor when you’re earning it on money you’ve saved and invested.

Compound interest can be defined as interest calculated on the initial principal and also on the accumulated interest of previous periods. Think of it as the cycle of earning “interest on interest” which can cause wealth to rapidly snowball. Compound Interest will make a deposit or loan grow at a faster rate than simple interest, which is interest calculated only on the principal amount.

Not only are you getting interest on your initial investment, but you are getting interest on top of interest! It’s because of this that your wealth can grow exponentially through compound interest, and why the idea of compounding returns is like putting your money to work for you.

Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.

Return on £5,000 invested - 1year        2year       3year         4year           5year

                                             £5,400      £5,832     £6,298       £6,801          £7,354

Return on £15,000 Invested -1year        2year       3year         4year           5year

                                              £16,200    £17,496   £18,895     £20,406       £22,038

Return on £25,000 Invested - 1year        2year        3year         4year          5year

                                                £27,000   £29,160    £31,492      £34,011      £36,731

Return on £100,000 Invested- 1year       2year        3year         4year          5year

                                                £108,000 £116,640  £125,971    £136,048   £146,931

Past performance not a guide to future returns. The value of an Investment and any income from it are not guaranteed and can go up or down and there is risk of loss to your investment.

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