Use Compounding Interest Calculators

Once you write down your goals, the first step to figuring out your timeline is understanding your financial net worth– what we talked about earlier, and the second step is understanding how much you are earning, or losing, each month. Compounding interest is how assets make money. 3% may sound like nothing; but if the interest compounds monthly this 3% becomes millions of dollars within a few years. However; usually compounding happens once per year, which is far less profitable. It is a bit confusing to understand compounding interest at first; so look online for a “compound interest calculator”. Plug your earnings into the calculator and it makes everything easier to understand.