Compound Interest Explained on a Whiteboard | Day 6 of 30

Compound interest, explained simply on a whiteboard. Money sitting in a savings account loses value to inflation over time. Gold tends to hold its value as a hedge. Bad debt compounds against you — the rate grows and the balance gets worse. But the same force works for you when you invest: your money earns a return, then the next period earns a return on the new, larger amount, and it keeps adding to itself. That's an exponential function, not a straight line. Reinvest your dividends and your money works for you instead of you working for it. Day 6 of 30 — honest advice for young men. This afternoon: I'm signing off for the Sabbath. Subscribe so you don't miss it.

Added 9 Jun 2026