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The Power of Compounding Interest - CLICK TO WATCH

Apr 23, 2024 | Nora Yousif


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Financial Advisor Nora Yousif CFP®, CDFA® explains how compounding interest works to build wealth over time and help you reach your financial goals.

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Have you ever wondered how much you need to save and invest every month to become a millionaire or millionairess? Of course you have! So, let's get right into it. Let's assume an average return of 9% from now, all the way up until age 65, and you're starting off now at age 25 with 0 whole dollars to your name. The amount you have to save and invest every month is $250. At 35, $600. At 45, $1,600. And at 55, $5,500 a month! Ouch, you don't want to be there. And hence, the power of compounding interest. That shows time really is money, and so important for you to effectively build wealth over time. Bottom line, the sooner you start, the easier it is. And if you're curious to know what your magic number is that you need to save and invest every month - go ahead, send me a message. I'll run the calculation for you, just send me two things: how old you are and how much you've saved up until now. Stay tuned for more empowering tips.

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