I think that in today’s world everybody knows what is compounding. If you ask someone what is compounding he or she will simply say investment of your earnings that are earned through investing is compounding. Despite they know the meaning of compounding; they don’t want to be serious about it.
Let’s look at an example to have a clear understanding. John and Melinda have $10,000. John started investing at the age of 25 till 50 and Melinda started investing from 35 till 50. At the age of 50 John would have almost doubled the money of what Melinda have. How? They invested the same amount. The difference is in between their application of time. John gave more years than Melinda. Time plays a vital role. Still people will not bother for one or two or about some years when they plan for their investment strategies.Albert Einstein told that compounding is the biggest mathematical miracle ever. What he said was actually very correct but still people take it as nothing.
So act today and start investing today. The best age for starting an investment is neither 18 nor 21. The best age is when you have extra money after savings. Don’t think that you are investing pennies because even pennies can make you richer by the magic of compounding.