🧠 The Power of Compounding: How Time Can Make You Rich 💸

🚀 What is Compounding?

Compounding is the growth of your money on top of the growth you've already earned. In simple terms:

Over time, this snowballs into serious wealth—even if you're investing small amounts.

🕰️ Why TIME Matters More Than Amount

Let’s compare two people:

1. Riya starts investing ₹500/month at age 20
2. Rahul starts investing ₹1,000/month at age 30

Both get 12% annual returns.

• At age 50:

  • Riya (₹500 x 30 years) → ₹17.9 lakhs

  • Rahul (₹1,000 x 20 years) → ₹9.9 lakhs

Despite investing less, Riya ends up with nearly double the wealth.

👉 That's the magic of time + compounding.

🧮 Rule of 72 (Quick Trick)

Want to know how fast your money can double?

Example: 72 ÷ 12% = 6 years

So, ₹10,000 invested at 12% becomes:

• ₹20,000 in 6 years

• ₹40,000 in 12 years

• ₹80,000 in 18 years

• ₹1.6 lakh in 24 years

No extra investment—just time.

🧘‍♀️ The Takeaway

• Start early, even if it’s just ₹500/month.

• Be consistent.

• Let compounding do its thing.

• Don’t interrupt the process.

Best regards

The Daily Chain