Do you know how to calculate compound interest? Or even how compound interest works? Albert Einstein once called compound interest the 8th wonder of the world. And for good reason. Compound interest is what the wealthy are taking advantage of and the not so wealthy are not. It is what separates the 1% from the rest of us. In this video, I tell you about what compound interest is, take you behind the scenes to show you how it’s calculated step by step, and guide you through the use of the compound interest formula.
Check out the compound interest calculator on the United States SEC website: https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator
What would you do if with $400,000 generated from compound interest? Let me know in the comments.
0:00 – Defining Compound Interest
2:27 – Method 1 – Manual Calculation
5:15 – Method 2 – Compound Interest Formula
7:26 – Final Thoughts
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How to Create a Monthly Budget: https://youtu.be/-fkCYOBgCww
How to Use the Cash Envelope System: https://youtu.be/l8DUZ1KWke0
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