DollarDan is learning that compound interest could be the secret to growing his dollars and making him rich.
What is compound interest, DollarDan asked Einstein?
“Think of $100 as a small snowball. Think of snow on the ground as interest and think of a long long snowy slope as time. The longer the $100 snowball rolls down that slope and the more snow (interest) it picks up the bigger it will grow. If you leave the $100 snowball and all the snow (interest) on that snowball and don’t take any of the snow (interest) away it will just keep on getting bigger and bigger”.
Your $100 in 30 years time could be worth $100 000.00. If you add $100 dollars to that snowball every month, your original $100 could grow to $400 000.00
“So for compound interest to work you need your own money (doesn’t have to be a lot), a lot of time and interest”, DollarDan sums up.