The Power of Compounding in Investing | compound intrest | how compounding works | how compounding works in mutual fund | compound intrest formula
The power of compounding in investing is a concept that can transform your financial future. It's the secret weapon that separates those who achieve long-term wealth creation from those who struggle financially. Let's explore this powerful principle through the tale of two friends, Ram and Shyam, and discover how small, consistent investments can lead to significant wealth over time. The Power of Compounding in Investing: A Tale of Two Friends Meet Ram and Shyam, two 20-year-olds who start their careers with identical monthly salaries of ₹50,000. While this amount seems substantial for young adults without major responsibilities, they choose very different paths. Shyam, excited by his newfound income, decides to live it up. He spends his entire salary on parties, clubbing, new clothes, and even buys a bike. He believes in enjoying life to the fullest, leaving nothing for savings or investments. Ram, on the other hand, takes a different approach. Having read "The Ri...