Rekombinant

Time plays an essential role in building your future wealth, not only because the longer you contribute, the more you’ll have, hut also because with time, the contributions you have already made will do more work for you. This second feature that makes time so powerful is called compounding.
When you leave your money invested over time, the amounts of money that your contributions are generating on their own are the worker bees of your money hive.
For instance, let’s say you are investing $6,000 a year, and that $6,000 is earning 8 percent. Let’s assume that your investment will be able to average that 8 percent over the next twenty years, and that you continue to add $6,000 at the beginning of every year as well. There will come a point in time when the earnings on your account will add up, by themselves, to more than the $6,000 you are putting in every year. This is when those worker bees really start to make that money honey.