{"id":9985,"date":"2023-08-08T01:09:10","date_gmt":"2023-08-08T01:09:10","guid":{"rendered":"https:\/\/isafespend.com\/investing\/video-how-can-compound-interest-work-for-you\/"},"modified":"2023-08-08T01:09:16","modified_gmt":"2023-08-08T01:09:16","slug":"video-how-can-compound-interest-work-for-you","status":"publish","type":"post","link":"https:\/\/isafespend.com\/?p=9985","title":{"rendered":"VIDEO: How Can Compound Interest Work for You?"},"content":{"rendered":"<div id=\"hs_cos_wrapper_post_body\">\n<p style=\"text-align: justify;\"><span style=\"background-color: transparent; font-family: tahoma, arial, helvetica, sans-serif;\"><span style=\"font-size: 1rem;\">Compound interest is an essential concept to understand when balancing the forces of investing and <\/span>borrowing<span style=\"font-size: 1rem;\">. It gives you the ability to make stronger money moves. Albert Einstein said compounding interest is the eighth wonder of the world and one of man\u2019s greatest inventions.\u00a0<\/span><\/span><\/p>\n<p><!--more--><\/p>\n<p><strong><span face=\"tahoma, arial, helvetica, sans-serif\" style=\"font-family: tahoma, arial, helvetica, sans-serif;\"><i>What is the true definition of compound interest?<\/i><\/span><\/strong><\/p>\n<blockquote><p><em><span face=\"tahoma, arial, helvetica, sans-serif\" style=\"font-family: tahoma, arial, helvetica, sans-serif; font-size: 16px;\"><span>Compound interest (or compounding interest) is interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan. It\u2019s thought of as interest on interest.<\/span><\/span><\/em><\/p><\/blockquote>\n<p style=\"text-align: justify;\"><span style=\"font-family: tahoma, arial, helvetica, sans-serif;\">Compound interest can work for you in your investments or it can work against you if you are repaying debt, especially high-interest rates, such as credit card debt. When working for you compounding interest in investments can be a potent factor in growing your money. In the video below, Kevin talks about the basics of compounding interest and how it works.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"background-color: transparent; font-size: 1rem; font-family: tahoma, arial, helvetica, sans-serif; text-align: center;\">Watch the video below:\u00a0<\/span><\/p>\n<div class=\"hs-embed-wrapper\" data-service=\"youtube\" data-responsive=\"true\" style=\"position: relative; overflow: hidden; width: 100%; height: auto; padding: 0px; max-width: 560px; max-height: 420px; min-width: 256px; display: block; margin: auto;\">\n<div class=\"hs-embed-content-wrapper\">\n<p><iframe loading=\"lazy\" title=\"How Can Compound Interest Work for You?\" width=\"768\" height=\"432\" src=\"https:\/\/www.youtube.com\/embed\/j8Ilk9zgGzQ?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" allowfullscreen><\/iframe><\/p>\n<\/div>\n<\/div>\n<p style=\"text-align: center;\">\u00a0<\/p>\n<p style=\"text-align: center;\"><span style=\"background-color: transparent; font-family: tahoma, arial, helvetica, sans-serif; font-size: 1rem;\">Video Transcript:\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: tahoma, arial, helvetica, sans-serif;\">Hi Everyone! My name is Kevin Major and today we\u2019ll talk about Compounding interest. Compound interest or compounding interest is the interest calculated on the initial principal and also the accumulated interest of the previous periods of the deposit or loan.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: tahoma, arial, helvetica, sans-serif;\">You can think of this as interest on interest. To better understand compound interest let\u2019s go through a couple of examples. Say you have credit card debt or student loan debt you know you have to pay interest towards the company that\u2019s lending you the money, but what you might not know is how often that interest is reviewed or how you\u2019re paying it. The interest could be reviewed on your account on an ongoing, monthly, quarterly, semi-annual, annual basis and every time you\u2019re making a payment towards this account you\u2019re paying a little bit towards the principle as well as a little bit towards the interest while what you might not know is if you\u2019re making the minimum required payment to these accounts you might be making a payment that\u2019s less than the accumulated interest. So on the next month\u2019s payment not only are you paying interest on the principle you\u2019re still borrowing but you\u2019re paying interest on the outstanding interest on the previous period. Another way to look at this would be an investment or 401(k) account where you have compound returns. You know you\u2019re putting money into the account and you know you\u2019re seeing market performance but what you might not know is for every day you see positive growth not only are you receiving money from returns from the money you put into your account but you\u2019re also receiving returns on all the previous growth you\u2019ve seen.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: tahoma, arial, helvetica, sans-serif;\">Hopefully, this has helped give you a better understanding of what compound interest is and more money advice and resources check out MoneyNav.<\/span><\/p>\n<\/div>\n<p><script>(function(d, s, id) {\n  var js, fjs = d.getElementsByTagName(s)[0];\n  if (d.getElementById(id)) return;\n  js = d.createElement(s); js.id = id;\n  js.src = \"\/\/connect.facebook.net\/en_GB\/all.js#xfbml=1&status=0\";\n  fjs.parentNode.insertBefore(js, fjs);\n}(document, 'script', 'facebook-jssdk'));<\/script><br \/>\n<br \/>Read the full article <a href=\"https:\/\/moneynav.com\/blog\/compound-interest-work-you?hsLang=en\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Compound interest is an essential concept to understand when balancing the forces of investing and borrowing. It gives you the ability to make stronger money moves. Albert Einstein said compounding interest is the eighth wonder of the world and one of man\u2019s greatest inventions.\u00a0<\/p>\n","protected":false},"author":1,"featured_media":9986,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49],"tags":[32],"class_list":{"0":"post-9985","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing","8":"tag-featured"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.12 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>VIDEO: How Can Compound Interest Work for You? | iSafeSpend<\/title>\n<meta name=\"description\" content=\"Compound interest is an essential concept to understand when balancing the forces of investing and borrowing. 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