The Magic of Compound Interest

Limor Markman
Limor Markman is a Real Estate Investor and Money Expert empowering women to live unapologetically Financially FabulousTM lives! Following a decade of marketing leadership in the Financial Services industry, Limor found herself asking if there is more to life than climbing the corporate ladder and working even more hours. With these thoughts in mind, she embarked on a journey to educate herself on real estate investing and has quickly become an accomplished real estate investor with properties across Canada. Limor launched www.Limor.Money as well as the YouTube channel ‘Limor’ as a judgment and jargon free space for women to learn about and excel at managing their finances. She travels across Canada teaching women the basics of real estate investing. She is also a contributing author to the best selling book, “Who’s Going To Stop Us Now,” where she tells her personal finance journey. Limor believes that all women should be financially independent regardless of their relationship status and has made it her mission to empower women to take steps to make this a reality.
Personal Finance

Nov 06,2017

Let your money reach it’s full potential with compound interest.

According to Albert Einstein, compound interest is the 8th wonder of the world. Compound interest is interest added to a principle amount, which in turn earns additional interest. To clearly understand compound interest, it is best to contrast it with simple interest. With simple interest you earn interest on the principle amount only. Taking advantage of compound interest for your investments can significantly increase your investments over time. This is why time is considered the magic factor! The more time you have for your investments to increase, the greater exponential growth you’ll have on your investments!

While there is a benefit to having a lump sum of money growing with compound interest over a long period of time. It becomes even more financially advantageous when you contribute funds towards that investment on a regular basis. You can contribute monthly or set up a small automatic payment with each pay-cheque.

It is often re-iterated by experts that people should start investing at an early age. Someone who starts saving at age 25 for their retirement, will have 40 years for their investments to grow if they retire at 65.

Regardless, of your age, you should be contributing regularly towards your retirement fund. Often times people in their 20’s or 30’s don’t see a retirement fund as a priority. It can be tough in the early days of your career when you have a lower income to allocate funds to your retirement. After all, there are so many competing financial priorities, like establishing a decent sized emergency fund, saving for a home and just the basic costs of living on your own for the first time.

Even if you are only able to allocate a small amount, make the effort to do so and then let the magic of compound interest and time do the rest!

 

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