Term

Compound interest

Interest calculated not only on the amount invested but also on the income already earned. That is why savings grow faster and faster over time.

The 21 Irrefutable Laws of Leadership, John C. Maxwell

Explained in

• The 21 Irrefutable Laws of Leadership, John C. Maxwell
• Same as Ever: A Guide to What Never Changes, Morgan Housel

  Growth in which each gain is added to the amount that has already grown. That is why a small gain over many years produces a huge result.

• The Psychology of Money, Morgan Housel

  when returns start earning returns of their own, so money grows faster and faster with every passing year

All terms