In this episode of Money Made Simple, Jennie and Liv explain how compounding returns (including compound interest) work, and why compounding is such an important financial concept to understand. So magical, in fact, that Albert Einstein called it the "eighth wonder of the world". Go figure!

This episode covers:

• A simple explanation of how compounding returns work
• An example of how compounding can work in terms of interest on your bank balance vs investment returns
• How compounding can work against you, via interest on debt
• Why time in the market (aka get saving, earlier!) is such a good way to take advantage of compounding returns

Resources we mention in this episode:
- sorted.org.nz
- simplicity.kiwi
- moneyhub.co.nz

We hope you can walk (or dance) away from this episode with the knowledge and confidence to get compounding returns working for you, and minimise the impacts of compounding debt that work against you. 

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Disclaimer: This podcast contains personal opinions and is intended to provide educational information only. It doesn't relate to your particular financial situation or goals and is not financial advice or recommendations. Simplicity New Zealand Limited is the issuer of the Simplicity KiwiSaver scheme and investment funds. For product disclosure statements please visit Simplicity's website simplicity. kiwi.