How Compound Interest Works For And Against You

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What Is Compound Interest?

Compound interest or compounding interest is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods. Thought to have originated in 17th century Italy, compound interest can be thought of as "interest on interest," and will make a sum grow at a faster rate than simple interest, which is calculated only on the principal amount.

Compound interest can be your friend or enemy. How do you make sure that it becomes the former, and make sure it works in your favor?

In this video, I will be talking more about Compound Interest and how it could work for you or against you.