Compound interest

Written and accurate as at: 10 January 2018

In our module, Where Your Wealth Comes From, we discuss your personal financial empowerment and the source of your wealth creation is you. Ultimately, this comes down to the understanding that it’s the culmination of the decisions that you make day-to-day regarding areas of your personal finances (e.g. repaying debt, and saving and investing for the future), compounded over time, which help you to accumulate wealth.

It’s important to remember that you are not alone on your journey towards the accumulation of wealth – you have us, and often the power of compounding, to help you along the way. In reference to compounding, Albert Einstein once famously said, “Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.” As such, in this animation, we illustrate the power of compound interest – the principles behind this are not just limited to your interest bearing savings account.