In the last article, we talked about goal-based investing i.e investing with a goal in mind. Howbeit it can be discouraging at times to see the distance between our goal and our value of investment at the moment.

One, don’t be discouraged. Don’t wave it off as an impossible mission. You can reach your goal if only you can start now. Imagination alone will not convey you to your goal, you need actions to get there. Therefore, start now.

Two, there is what we call the power of compounding. In simple terms, it is interest earned on interest. For instance, if you keep investing a particular amount of money periodically, maybe in mutual funds, this money, the principal, earns interest. Compounding it means this interest is added to the principal and the next interest accrues on the added previous value. This continues on and on and you’d be surprised at how much you’ve accumulated over a period of time.

To understand more on calculating compound interest on your investment, you can make use of online compound interest calculators.

We believe in you!

To your financial independence and freedom 

The Power of Compounding

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