The compounding effect

The compounding affect: How it could boost or harm your finances

Albert Einstein might be best remembered for his theory of general relativity and Nobel prize.  But understanding E=mc2 will only get you so far toward your long-term financial goals.

You might be surprised to learn, then, that the great scientist is on hand to help here too, thanks to his reputed observations on a fundamental financial concept.

The compounding effect – essentially growth on growth that snowballs over time – can have an enormous impact on your finances. It can significantly increase the size of your savings and investments in the long term but, if not carefully managed and understood, it can also work against you.

To discover more about compounding, how it could boost or harm your finances, and what Einstein did (or possibly didn’t) have to say about it, read the guide here.