The Finance Bible

#101 - Compound interest explained clearly


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In this episode, Zeke and Oscar break down compound interest — the simplest concept in finance that most people still don’t understand. You’ll learn the difference between good compound interest (shares, ETFs, property, superannuation) and bad compound interest (credit cards, personal loans, and late fees that snowball into debt traps).

Using real calculations and case studies, they show how starting early can turn a few dollars a week into millions — and how ignoring it can cost you just as much.

📈 Topics covered:

  • How compounding actually works — and why time matters more than money
  • The difference between earning and paying compound interest
  • Real-life examples using the MoneySmart calculator
  • Credit card traps that compound against you
  • How small spending habits kill your long-term growth
  • Simple ways to automate good compounding through shares and ETFs

🎯 Whether you’re 20 and starting out or 40 and restructuring, this episode gives you a practical framework to make compound interest work for you, not against you.

🔗 Tools mentioned: MoneySmart Compound Interest Calculator

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Disclaimer:
The information provided in this podcast is general in nature and does not constitute personal financial advice. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs. Asset Road Pty Ltd recommends you seek independent financial, legal, taxation or other advice as required. All investments carry risk. Past performance is not indicative of future results.

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The Finance BibleBy Zeke Guenthroth and Oscar Don