Millen's Blog

Join the Mindful Money Call

Receive FREE Support and Guidance each month!

For Financial Success


Power of Compound Interest

I hope by now you’ve realized that you need to consistently invest as much as possible based on your circumstances.

Another reason your wealth will grow faster with consistent contributions is the magic of compound interest. The idea of compound interest goes back to Albert Einstein who famously said: “Compound interest is the eighth wonder of the world. He who understands it, earns it…he who doesn’t…pays it.”

Compound interest, which is commonly used in finance and economics, occurs when you pay or receive an interest on the sum of principal and interest amounts, not just the initial principal. Simple interest is when the interest is not added to the principal when it gets calculated.

The ultimate result of compounding depends on the compounding frequency (e.g. monthly, quarterly, annually). For any given interest rate and compounding frequency, an equivalent rate for any different compounding frequency exists.

For example, the yearly rate for a loan with 1 percent compound interest per month is approximately 12.68 percent per annum as opposed to 12 percent if it were simple interest. This equivalent yearly rate is often referred to as annual percentage rate (APR).

Compound interest is your friend when you receive it and your enemy when you have to pay it because it grows exponentially. If you currently have or ever had a student loan, a credit card debt or a mortgage on a house, you’ve paid compound interest.

As it may pertain to your particular investment accounts, always re-invest your accrued interest into additional shares so that compound interest will help grow your investment portfolio. If you use brokerage services like Ameritrade, E-trade or Fidelity Investments, they have an automatic reinvestment option that you can set up online for your brokerage account.

Read more on this subject next week…

To Your Wealth, Health and Happiness,

To learn more about Millen and her mission of Financial Freedom, click here

About Millen Livis

Thank You For Sharing ...

Leave a Reply

Your email address will not be published. Required fields are marked *

  • ::Millen has a way of opening up conversations that not only make you feel safe to talk about money, but her questions have been so profound that they have made immediate shifts in my mindset and my circumstances have changed almost immediately too, including more money showing up, but more importantly, more and more opportunities.  I have found new and inspired direction, and am feeling a lot more peaceful and excited about life in general. Millen offers so much value and a solid advice! She is a big picture thinker and it is infectious! Thank you, Millen, from the bottom of my heart and the top of my soul.

    ~ Renee Commins, Coach, Renee Commins Coaching

  • ::Millen Livis is a gift to humanity. Millen is very generous with her time and energy, sharing her vast life experiences and strengths, empowering me to become a better human being. Millen has impacted my life spiritually, emotionally, physically and financially, by her encouragement and clarity. I have not said, “Thank you!” enough.

    ~ Heidi Stefan, B.A. Detox Support Counselor, Archstone Recovery Center of the Palm Beaches, Inc.

  • ::Millen brings together an interesting mix of feminine wisdom, clear logic, assertiveness and humility in all of her interactions. With her warmth, intelligence, diverse experience and passion for ‘Dare to be the best you could be’ message, she inspires other women to reach for the goals they set for themselves.

    ~ Sharon Keller, Golden Bear Realty, LLC

  • ::Using laser like energy, Millen gives her full attention to your issue and stays with it until a satisfactory resolution or conclusion is reached. Open minded, yet direct and honest, Millen balances objectivity with compassion. It is a joy to work with her!

    ~ Mary L. Holden, Freelance Editor and Writer

Become Financially Powerful Strategy Session


During this FREE consultation ($497 value) you will:

  • Get absolute CLARITY about the dream lifestyle you REALLY want to have
  • Discover four essential building blocks for achieving financial freedom in your life
  • Determine the #1 thing stopping you from having the financial success you want
  • Identify the most powerful actions you can take to move forward with confidence
  • Complete the consultation with the excitement of knowing EXACTLY what to do next to create the lifestyle and financial success you desire

I would LOVE to help you create your highest VISION.
Let's get on a call and connect. There’s no obligation whatsoever, guaranteed!
BEST THINGS come to those who seize the moment.