Investing 101 — Why starting early beats trying to catch up later.
Compound interest is the engine behind almost all long term wealth. It is interest earned on your money plus all the interest it has already earned, so growth accelerates over time.
The earliest dollars you invest do the heaviest lifting, because they compound the longest. Starting at 22 instead of 32 can mean ending with far more, even with the same monthly amount.
Rule of 72: Divide 72 by your annual return to estimate the years it takes money to double. At 8 percent, money doubles in about 9 years.
$1,000 at 8 percent for 30 years grows to about $10,000. Compounding turns it into roughly 10x, not 3x.
Inflation is the flip side: because prices rise, a dollar today is worth more than a dollar later. That is why letting money sit idle quietly loses value.
15 practice questions with explanations. Free, and no account is needed to start.