The snowball effect
Year one, $100 at 10% becomes $110. Year two, the 10% is applied to $110, not $100. Over decades, this snowball does most of the heavy lifting.
Why starting early wins
Someone who saves a small amount from age 20 to 30 and then stops often ends up with more than someone who starts at 30 and saves for 35 years. Time is the multiplier.
How to use it
Automate a monthly transfer into a long-term investment account. Then leave it alone. The math works quietly in the background.
Example
$1,000 growing at 8% a year with no additions becomes about $10,000 in 30 years — a 10x from doing nothing but waiting.