Compound Interest

Interest friend or foe? Depends on which side of it you are on. Compound interest is a powerful thing. Need a quick refresher? This article oncompound interest and its implications in investments gives a basic and easy to understand explanation. It also gives some practical advice on how to use compounding to your advantage.

As my Aunt Nancy pointed out in the comments on this post, making extra payments helps ease the effect of compound interest when you find yourself on the wrong side of its power! As the article points out we most easily see the power of compound interest in credit cards, and loans. Hopefully we are on the right track to stop seeing compound interest work that way and start seeing it work in savings.

This is a sponsored post.