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Jim Wang of Bargaineering.com talks about the true power of compounding interest. Every other personal finance guru, when explaining compound interest, talks about how your money grows on top of itself. Ok... so what?

When you delay saving, it really costs you. When you wait a year, you don't give up a year... you give up forty. Watch the video and I'll explain.

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  • Jeremy Vohwinkle 1 month ago
    Good reminder of a basic concept. People always think that just delaying a little while will have little or no effect, but time is extremely powerful and a limited commodity. Don't waste a single day and make your money work for you.
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  • Brian Scheur 1 month ago
    Compounding is one of the most important personal finance concepts that needs to be understood from Year 1 to make a difference in Year 40. Jim does a great job of explaining this.

    I will definitely pass this along to friends to check out.
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  • Matt SF 1 month ago
    Good reminder that compounding interest is the most powerful force in the universe.

    Reminds me of that old IRA selling point where a young adult can contribute the maximum between 20 to 30 years of age and stop contributing, but still have a higher balance at retirement age than a person who starts at 30 and contributes the max until they retire.
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  • Adam Baker 1 month ago
    The only thing more appealing that compounding interest is compounding Jim Wang videos!

    I can't wait for more!
  • JIM WANG plus 1 month ago
    hahahahahha thanks man :)
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  • Matt Jabs 1 month ago
    Great illustration Jim. This begs the question... should you begin investing while still in debt?

    According to the video, the answer seems to be a resounding - YES!

    Thoughts?
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  • Stephanie Collins 1 month ago
    I love compound interest videos! Not even kidding - it's just one of those concepts that works so much better visually. :)
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  • Rick Franics 26 days ago
    Jim,

    I enjoyed the video- compound interest is a great PF topic because it is so powerful and so misunderstood. That why I had it as the topic of my first blog post:

    ponderingmoney.com/2009/10/12/you-need-to-understand-compound-interest/

    Matt,

    You can be better off to defer contributions today IF you make future contributions. That works even with a 401K match check out:
    ponderingmoney.com/2009/10/30/which-wins-401k-match-or-high-interest-cc-debt/

    -Rick Francis
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