Most people understand compound interest intellectually but don't feel it. The first year, your investment grows by $10. You feel a ripple. After ten years, a wave. After thirty years, a tsunami.
FIRE isn't about striking it rich with one big win. It's about letting compound returns do the heavy lifting. Your $100 becomes $110, then $121, then $133. The gains build on themselves. The longer you let it ride, the faster it grows.
Time is your advantage. Starting early means you need to save less. Waiting means you fight friction. A 25-year-old saving $500/month beats a 35-year-old saving $1,000/month if the returns are equal.
Compounding works in reverse too. Credit card debt at 20% interest compounds against you. Outstanding balances become dangerous fast. The same force that builds wealth can crush you if you're on the wrong side of it.
Einstein called compound interest the eighth wonder of the world. He who understands it earns it. He who doesn't pays it. That's the difference between working until 65 and retiring at 40. Between hoping your money lasts and knowing it will.
https://firebtc.substack.com/p/the-power-of-compounding
FIRE isn't about striking it rich with one big win. It's about letting compound returns do the heavy lifting. Your $100 becomes $110, then $121, then $133. The gains build on themselves. The longer you let it ride, the faster it grows.
Time is your advantage. Starting early means you need to save less. Waiting means you fight friction. A 25-year-old saving $500/month beats a 35-year-old saving $1,000/month if the returns are equal.
Compounding works in reverse too. Credit card debt at 20% interest compounds against you. Outstanding balances become dangerous fast. The same force that builds wealth can crush you if you're on the wrong side of it.
Einstein called compound interest the eighth wonder of the world. He who understands it earns it. He who doesn't pays it. That's the difference between working until 65 and retiring at 40. Between hoping your money lasts and knowing it will.
https://firebtc.substack.com/p/the-power-of-compounding