The two sides of compound interest
Saving up for what you want is all about the delayed gratification. That upgraded car, new home or apartment or piece of furniture might be out of reach today. But if you can delay the purchase until you can pay for more of it upfront, you’ll be in a better financial position later.Â
While you are waiting, consider how your money could work for you. You could arrange a loan or payment plan, invest in the stock market, or let compound interest grow in a savings account.
In previous articles, we talked about how you can increase your income with a side hustle or better manage your money with personal finance tools. Now we're looking at the ins and outs of compound interest — that slow and steady miracle of math that keeps building up while you wait. We'll also look at the flip side of compound interest— when you're the one paying it — on auto and home loans and tips for how to pay less interest longterm.Â