The goal of compound interest is to make your money work hard for you. The alternative, of course, is to work hard for your money. Which would you prefer? You take advantage of compound interest by starting small and letting your savings build up. See a visual example of how compound interest works so that you know how to use it.


I found http://www.inspiredtosave.comuseful for visualizing compound interest. I found it easier to relate to than just looking at the numbers.