the one who doesn’t, pays it.”īetter be the one who earns it and benefits the most from it like Shruti. Einstein puts it rightly–“The one who understands it, earns it. This means you should be aware of who may be benefitting from compound interest when it comes to your debts. He who understands it earns it he who doesn’t pays it. You stay invested longer, it keeps getting better!īut despite being such a powerful tool, not everyone understands and benefits from the Power of Compounding. Albert Einstein once said Compound interest is the eighth wonder of the world. One can say that, the delay in investment cost Nisha around Rs 51 lakhs that could have helped her follow her passion during her retirement years. Even though her monthly investment amount was lower than Nisha, Shruti was able to garner 1.5 times more corpus than Nisha. This is because Shruti started investing 5 years early. Not really! The corpus built over this period by Shruti was much higher than Nisha. You might think that the amount of money accumulated will be the same for both, right? They had invested the same amount of Rs 24 lakhs in this process. Shruti started investing at the age of 25, while Nisha started late at the age of 30 and continued the same till both turned 50. Find helpful customer reviews and review ratings for FUN & PRIDE DESIGNS Einstein Poster - Compound Interest The Eighth Wonder of The World - Poster. They both had a target of retiring at the age of 50. Let us understand this concept of compounding with a simple story of two friends - Shruti and Nisha, both aged 25. We see that due to compounding, Rs.1 lakh became Rs.1.25 lakh at the end of the second year.Īll you need to do is to stay invested for a longer period of time as it helps you to exponentially grow your investment corpus and generate wealth. Here, the money you invest gets reinvested or, in other words, gets compounded to generate exponential returns over the long term. It is the POWER OF COMPOUNDING which, according to the great Albert Einstein, is the 8th wonder of the world. It is the most powerful tool in the universe to grow your money exponentially. Wondering which is the eighth wonder of the world? No – it’s not a monument, neither any majestic human creation nor a natural scenic beauty.
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