Imagine you save ₹100 a day. After one year, you have ₹36,500.
Now imagine your money is secretly earning its own pocket money at 8% a year. Your first ₹100 doesn't just sit there — after a year it has quietly turned into ₹108. After ten years, it's ₹215. After twenty years, ₹466.
That's compound interest: your money earns money, and that money earns money too.
The rule of 72
Want a cheat code? Divide 72 by the interest rate to get how many years until your money doubles.
- 8% → 72/8 = 9 years to double
- 12% → 72/12 = 6 years to double
- 6% → 72/6 = 12 years to double
Why starting young is the super-power
If you start investing ₹500 a month at age 15 vs age 30, same return, same contribution — you end up with roughly 3× more at age 60.
Not because you saved more. Because your money had more time to earn its own money.
The one trap
Compound interest works against you too. Credit cards charge 36–42% a year. ₹10,000 unpaid for 2 years becomes ₹18,000+. That's why "minimum due" is a trap.
Rule: compound is your friend when it's adding. It's your enemy when it's subtracting. Always ask: is this number adding to me, or adding to someone else?