The 8th wonder of the world: compound interest.

Written by

So the rumor goes, Albert Einstein was once asked what he thought was the greatest human invention and he answered, matter-of-factly: ‘Compound interest.’

Others say he apparently said:

“Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.”

Either way, compound interest is certainly a genius idea but the good news is it doesn’t take a genius to understand it nor to employ it.

What’s so great about compound interest?

Well, the best part about compound interest is that even an average person can become a millionaire – even a vast millionaire – just by doing it. Really. You don’t have to hope to inherit money or get lucky someday. You just have to take advantage of compound interest. Another great thing: you don’t even need that much money to start with.

This is especially true if you’re young.

So start as soon as you possibly can. The “magic” of compound interest allows your money to grow and “snowball” in the long run. The earlier you start investing, the more your money will potentially grow.

Consider the median income in the United States today – it’s just $59,000 a year, according to the most recent stats from the United States Census. If the average 25 year old making $59,000 a year saved and invested 10% of their income every year ($500/month), they would have a whopping $2,924,643 by the time they reach 65.


Keep in mind, though, that this is assuming 10% stock returns and no salary raise – ever! So the real end result could actually be much, much higher. This possibility is all due to compounding interest. And if a person invests in companies that are growing, rather than stagnating, an initial early investment could multiply many times over in the course of the time span. This all bodes well for a young investor.

But what if you don’t have a lot to invest every month?
OK, let’s get real for a moment. Not everyone can afford to save 10% of their income. Maybe they can one month but not the next. That’s ok, too. You can still take advantage of compound interest so you can maximize your savings. It’s truly the smartest thing you can do in terms of your financial future.

So how does compound interest really work?

Here’s an example.

  • Mary signs up for MoneyLion Plus when she’s 25 years old and saves and invests $948 per year ($79 x 12 months).


  • Beth also saves and invests $948 per year but she starts when she’s 35 years old, 10 years after Mary.


  • When both Mary and Beth are 65 years old, Mary will have $89,549 saved whereas Beth will only have $38,864. Mary has contributed about $10,000 more than Beth, but even so Mary has come out about $40,000 ahead simply because she started investing 10 years earlier.


That is the power of compound interest folks. A most genius idea that pretty much anyone can do. Set your goals high, start as young as possible and you can’t go wrong. Even if you start a little later, you’ll still be a lot further ahead than if you’d never done it at all.

Want to save more money, stress-free?

Imagine a day when you don’t need to be concerned about the unexpected expenses that pop up in your life. And no longer having to worry about building your savings, much less even thinking about saving money. That’s because someone else will help take care of that for you.

Stay tuned. There’s a very bright light at the end of the saving money tunnel. And we think you’re going to love what MoneyLion has in store for you.

Learn more and get on the waiting list while you still can!

Sign Up
Sign Up
Sign Up