Albert Einstein famously called compound interest the “eighth wonder of the world,” a sentiment echoed by legendary investor Warren Buffett.
Compound interest, where you earn interest on both your initial investment and the interest it accumulates, has the power to grow wealth over time exponentially.
Buffett, who started investing at age 11, attributes much of his success to the long-term benefits of compounding. He likens it to a snowball rolling down a hill, growing larger as it gains momentum. This strategy emphasizes the importance of starting early, being patient, and allowing your investments to grow without constant intervention.
Compounding doesn’t discriminate—it rewards anyone who consistently saves and invests over time, regardless of their starting point. While the path to wealth may not be quick, the rewards of patience and consistency are undeniable.