What is a compound interest? Today we’ll talk in detail about what a compound percentage is. Do you think it is possible to become a wealthy person and achieve financial freedom by saving 5-20% of earnings every month?

Yes it is possible, but only under two conditions: money is invested + a compound interest is used (also its names: reinvestment, capitalization).

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How it works

Suppose you invested 100,000 rubles for a period of 1 year and received (one year later) a profit of 15% per annum (15,000 rubles). This money can be withdrawn and spent, but financial freedom cannot be achieved in this way.

And you can invest this money again. Then in a year we will get again 15% of 100.000 rub, but another + 15% of those 15.000 rub. Then, again, we invest all the profit received over the year.

It seems that this is a trifle, but it is in this "trifle" that lies the magic of long-term investment.

In 10 years, a complex percentage will turn our 100,000 rubles into __404.000 rub!__ And for 20 years at 1.636.000r. __And this is only from the initial amount!__

But we can add new money to the investment account every month. For example, at 5.000 per month for the same 10 and 20 years. See what happens: in 10 years, your total capital will be 1.634.758 rubles, and your monthly passive income will be: 17.111 rubles. But after 20 years, the figures are generally staggering: capital is 7.843.710 rubles and monthly passive income: 84 599 rubles.**This is how, and not otherwise, they achieve financial freedom.**