Five Pieces of Advice I Wish I Could Give to My Younger Self
From personal finance to living life, these five pieces of advice can guide anyone to live a fulfilling life
Albert Einstein was once asked what mankind’s greatest invention was. He replied: “Compound interest.” He was quoted as saying —
“Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.”
Despite being a business student, I didn’t comprehend the power of compounding. I understood the concept — but didn’t know how to use it. Imagine that my younger self understood this and started investing 10 years ago. He invested $100 every month at an average 10% rate of return. By today, he would have $19,384.28 against an investment of $12,100. That extra $7,384.28 would be his profit in 10 years.
If he continued investing from the age of 25 till the age of 60, he’d have $328,039.49. Compared to that, if he starts at the age of 35 and goes on for the next 25 years, he’d get $119,099.94. Starting 10 years earlier would almost triple his next 25 years of investment.
