Have you heard this quote from Einstein? “Compound interest is the most powerful force in the universe.”
No? That’s okay because he actually never said it. It’s one of those quotes that financial folks like me repeat because it sounds good and makes us look smart.
That’s okay, though. Just because Einstein didn’t actually say it doesn’t mean compound interest, or even better, compound investing, isn’t incredibly powerful.
Let’s learn what it is, and then I’ll show you just how amazing it is.
It’s been said making your first million is the hardest – I believe it was Einstein. What does this mean?
It means that accumulating the first million dollars is harder than getting your second or third or fourth. But why is this? In part, compound investing.
At its most basic, compound investing is this:
I work for my money, and then my money works for me.
But it gets even better. It’s more than just having your money make money.
It’s having the money your money makes make more money.
Say that five times fast!
Bam! Now that is what I’m talking about. This is the power of compound investing and how you can create massive wealth.
The proceeding blog post is an excerpt from Get Money Smart: Simple Lessons to Kickstart Your Financial Confidence & Grow Your Wealth, available now on Amazon.
About the Independent Financial Advisor
Robert Pagliarini, PhD, CFP® has helped clients across the United States manage, grow, and preserve their wealth for nearly three decades. His goal is to provide comprehensive financial, investment, and tax advice in a way that is honest and ethical. In addition, he is a CFP® Board Ambassador, one of only 50 in the country, and a fiduciary. In his spare time, he writes personal finance books. With decades of experience as a financial advisor, the media often calls on him for his expertise. Contact Robert today to learn more about his financial planning services.
