When it comes to investing, one of the best pieces of advice is to start early and invest small amounts regularly. This is because the power of compounding can have a dramatic effect on your investments over time.
The power of compounding is best illustrated with an example. Let’s say you invest $100 per month into a mutual fund that earns an average of 8% per year. After 10 years, you would have invested a total of $12,000. But, thanks to the power of compounding, your investment would have grown to over $20,000. As you can see, the power of compounding is quite remarkable. The earlier you start investing, the more time your money has to grow. Additionally, investing small amounts regularly can help to reduce the risk of investing in the stock market. This is because you are investing a small amount each month, rather than all at once. At Denme Financial Insight, we understand the power of compounding and can help you make the most of your investments. Our experienced advisors can help you create a plan that will help you reach your financial goals. Contact us today to learn more about how we can help you take advantage of compounding and grow your wealth.
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