Compound Growth

Personal

WHAT IS IT?

Compound growth is growth earned not only on the money you put in, but also on earlier growth.

IN PLAIN ENGLISH

Your money can start earning growth on its previous growth as well as on your original contributions.

SIMPLE EXAMPLE

If you invest £200 a month and the investment grows over time, future growth can build on earlier growth. Actual results vary because investment returns are not guaranteed.

WHY DOES IT MATTER

Time can make a significant difference to an investment illustration, which is why starting earlier can matter.

THE ROCKET TEST

Growth can build on previous growth, so time can become an important part of the equation.