“He who understands it, earns it; he who doesn’t, pays for it.” The previous words are said to be those of Albert Einstein commenting on the genius of “compound interest,” but it’s difficult to find real evidence tying him to the well-put statement, nor the claim that he proclaimed compound interest the 8th wonder of the world. The main thing is that whether Einstein uttered any of the quips attributed to him or not, they’re correct.
The power of compound interest is in many ways mesmerizing. Money saved in prudent fashion has a way of growing and growing over time. Perhaps paraphrasing Einstein, he who understands the multiplicative aspect of long-term saving has the chance to retire in reasonable splendor for doing just that. He who doesn’t pays dearly for not understanding what is so basic.
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