Money Matters: How Compound Interest Works

Finance Expert Sarah Reigelhulth’s says it’s been proven that the human brain struggles to grasp the concept of compound interest, however she says it really isn’t hard if you think about it in terms of earning interest on the interest you’ve gained. Money Matters!

In this handy video, she gives several examples of how compound interest works in your favour with a bank balance growing over the years without you having to do a thing.

‘Please note this content is of a general nature and should be used for informational and educational interest purposes only. Please seek professional advice, in relation to your own personal circumstances, before making any financial decisions.’

Did Sarah’s money matters explanation help? Tell us in the comments below!

This post was last modified on 21/01/2016 11:50 pm

Sarah Riegelhuth: Co-founder of Gen Y financial advisory firm, Wealth Enhancers and the League of Extraordinary Women, Sarah is passionate about two things: following your dreams, and loving your money! She is an award winning financial advisor and entrepreneur, featured in a variety of media including Kochie’s Business Builders, Women’s Agenda, Money Management, Channel 7's The Morning Show and Women’s Health magazine. Sarah’s book, Get Rich Slow, was of the most popular Dymocks finance titles in 2013. She is the founder of the 8 Week Money Makeover, an online money management program designed to help everyday Australians wipe their debts and build wealth, one step at a time" Contact: editor@thecarousel.com
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