How money grows
Work out how money grows when its growth earns growth too.
When an investment grows, the growth is added to your money. Next year you earn growth on the bigger amount. This is called compound growth.
J$100,000 growing 8% a year becomes J$108,000 after one year, J$146,933 after five years and J$215,892 after ten, without adding anything. (8% is an example for the maths. Real returns go up and down.)
Time does most of the work. The longer money is left to grow, the faster the growth piles up. The FSC says the same about saving for retirement: the earlier you start, the better.
Write a caption.
About 1 minute
For education only. Not financial, investment, tax or legal advice. Investing carries risk. Read more
Everything in this book is for education only. It explains how money and investing work in general. It is not financial, investment, tax or legal advice, and it does not recommend any particular investment, product or provider. Prices, rules and tax figures change: check them with the official source before you act. Before you make an investment decision, consider speaking to a licensed adviser where you live (in Jamaica, one licensed by the Financial Services Commission). Investing carries risk, including losing some or all of the money you put in.