The Power of Compounding: How Small Investments Create Wealth Compounding is often called the eighth wonder of the world. It’s the process where your money grows not just on the initial investment but also on the returns generated over time. Imagine investing ₹10,000 at a 10% annual return. After one year, you have ₹11,000. In the second year, instead of earning interest on ₹10,000, you earn it on ₹11,000. Over decades, this snowballs into significant wealth. The key? Start early, stay consistent, and reinvest your earnings. Whether it’s stocks, mutual funds, or fixed deposits, compounding works best with time. #finance #financetips #2025 #money
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