Small deposits + time = the closest thing to money magic.
Compound interest means your money earns returns — and then those returns earn returns of their own. The effect is small at first and enormous later. That is why starting early beats starting big.
Play with the numbers above: add $100 to the monthly contribution or two years to the timeline and watch the future value jump. Time is the ingredient you cannot buy back.
A high-yield savings account typically pays a few percent per year. The stock market has averaged roughly 7-10% per year over very long periods — with plenty of ups and downs along the way. Use a conservative number for planning.
Because compounding is exponential. Money invested at 25 has 40 years to compound; money invested at 35 has 30. That missing decade can easily cut the final number in half.
No — it is a projection, not a promise. Real returns bounce around. Treat the result as a direction, not a contract.