You are going to pay yourself a penny the first day. Then double it the next day. And double it the next day. And do this for a month. The interesting thing is the numbers remain quite small for quite a while.
Day 10 you’re at £5.12.
Day 20 you’re at £5,242.
Then in the last week the values begin to get big.
And the end-point is Day 31 where you reach £10,737,418.24.
The magic of compound interest is how a small thing becomes such a big thing. Our problem is we don’t think a small thing could ever amount to anything, so we don’t start. Our problem is we want to go get the big payday, hit the ball out of the park. But that little sum each day is a more reliable way getting to a huge number. Who knew?
Compound interest is such a powerful tool that Albert Einstein once called it the most important invention in all of human history.