“Compound interest is the eighth wonder of the world. He/she who understands it earns it. He/she who doesn’t pays for it.”---Albert Einstein

Interpretation:

Interpretation:

Like most people after college I stopped reading
books because I thought I was "set for life"
I have an Engineering degree & awesome
high-paying job and my life is going to be great.

Because I stop reading books for 8yrs through the power of Compound Interest I paid negatively for this decision!

Why?

1./ Poor Personal finances

I made terrible personal financial decisions(i.e. buying liabilities big cars, fancy clothes, large credit card debt)

Hence for 8 yrs, I was over-indebted and unhappy
with my life because I lacked the Personal Finance
skills to manage my finances.

2./ Change is the only constant

Because I was not learning & acquiring new skills,
the world economy was changing at an exponential rate,
while I stayed stagnant with outdated skills.

I struggled to find job promotions or new jobs
because my mindset & skills were outdated.

3./ Knowledge Begets more Knowledge

The compounding principle can be applied to learning.
You can have the same effect.
Knowledge begets knowledge.
Over time you will become a powerhouse.
With enough wisdom about how some things work,
you can connect ideas better and use them to your advantage.


Conclusion:

You see successful/wealthy people understand
the law of compound interest because it's
the foundation of Success and exponential growth.

Growth is inherently not linear.
Growth compounds over time due to the
Law of Compound interest.

I didn't respect this law hence I paid negatively for my poor decisions.
.
“The only thing that compounds FASTER than interest is learning.” Orrin Woodward