What Is Compounding?

Compounding turns small actions into massive outcomes:

• Growth accelerates over time as interest earns interest
• The earlier you start, the more powerful the effect
• Consistency > amount—small inputs matter if done long enough
• Patience is the price of exponential r...

1. Do a personal finance assessment. Ask what's coming in, what's going out, where's it going, and what's left. That is all you need to know.
2. Proactively try to negotiate lower interest rates on your debts.
3. Make extra payments

You’ll only build wealth if you save a reasonable percentage of those earnings.

• If your employer offers a 401(k) plan, increase your contribution.
• Automatically send a portion of your money to your savings or investment accounts before you can spend it.
• Purchase a home ...