wealth building
2 questions
- Finance
What is compound interest?
Compound interest is earning interest on your interest — your returns generate their own returns, causing money to grow exponentially rather than in a straight line. Over decades, it's the single most powerful force in personal finance.
- Finance
What is the pay yourself first method?
Pay yourself first means moving money into savings immediately when your paycheck arrives — before you pay bills or spend anything. Automating that transfer so it happens without willpower is what makes it work.