The Power of Compounding Interest: Why Starting Early Matters
- Nonso Akunwanne
- Jun 22
- 1 min read
Updated: Jun 25

For most people, Wealth "DOESN'T JUST SHOW UP" — it’s grown, day by day. One of the most powerful forces in finance, and a key principle behind growing wealth and long-term investing success, is compounding interest.
Think of compounding as earning interest on your interest. When you invest, your money earns a return. If you leave that return untouched, it gets reinvested and starts earning returns of its own. Over time, this snowball effect can turn even the smallest investments into significant wealth.
Here’s the magic: the earlier you start, the more time your money has to grow. A N100,000 investment earning 10% annually becomes N259,000 in 10 years. But give it 30 years? That same amount could grow to nearly N1.75 million — without adding a single extra naira.
That’s the power of time + patience + compounding.
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