The Power of Compound Interest: Why Young Investors Should Start Now

Time is Your Greatest Asset

If you're a young investor, compound interest is your best friend. The earlier you start investing, the more time your money will have to grow exponentially.

What is Compound Interest?

Compound interest is when you earn interest on both your initial investment and the interest already earned. This creates a snowball effect where your money grows faster over time.

For example, if you invest $5,000 at 7% annual interest and contribute $200 per month, here's how much you could have:

• In 10 years: ~$39,000
• In 20 years: ~$105,000
• In 30 years: ~$243,000

Now imagine if you waited 10 years to start investing. You would have less than half as much money at retirement!

Why Young Investors Have the Biggest Advantage

1. More Time = More Growth -- Even small amounts grow significantly over decades.
2. Less Risk Needed -- You don't have to chase high-risk investments; time does the work.
3. Compounding Turns Small Savings into Wealth -- A small investment today can be a fortune tomorrow.

How to Start Investing Now

• Open a high-interest savings account or a superannuation fund with compounding returns.
• Start automated monthly investments in index funds, ETFs, or shares.
• Avoid unnecessary debt -- compound interest works against you on credit cards and loans.

Final Thoughts

Your biggest advantage as a young investor is time. Even if you start with just $50 or $100 per month, compounding will grow your wealth effortlessly. The key? Start today and be consistent!