The Power of Compounding


To reap the most benefit from your investments, you need to start saving now.

If you’re patient and disciplined, your money can work for you and make a real difference in your account balance over time.

For compounding to work, you need to:

  • Start now.
  • Invest regularly.
  • Be patient.

The key is the power of compounding, the snowball effect that happens when your earnings generate even more earnings. You receive interest not only on your original investments, but also on any interest, dividends, and capital gains that accumulate—so your money can grow faster and faster as the years roll on. This is particularly evident in retirement accounts, where principal is allowed to grow for years tax-deferred or even tax-free.

Here’s an example we use :

$1000 invested for 3 years (156 weeks) earning 2% a week not reinvested will be worth $3120

$1000 invested for 3 years (156 weeks) earning 2% a week reinvested will be worth $20,959

Same initial investment, same duration, and the same return. The difference is $17,839

Play around with your own assumptions below using the Compound interest calculator:

Mintage Mining pays its distributions out weekly.