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Exponential growth: the most powerful force in the universe

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Exponential growth can be a difficult concept to grasp. You start off with a small amount, apply an interest rate, and the growth explodes out of control over time. A physical representation of the concept can be seen in folding paper- folding a piece of paper three times makes it as wide as your fingernail. Folding it ten times makes it as wide as your hand. Folding it thirty times would make it reach through the Earth’s atmosphere. Folding it 100 times would make it the size of the known universe, and it just goes on from there.

It works the same way with money. Whenever you can find a good interest rate, your money can grow faster than you can conceive of. It has been said that there is no force in the universe greater than compound interest, and grasping this concept can help you grow your money better and retire sooner. Check out this infographic for more info.

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