#1 - Howdy

Howdy, congrats, and cheers. You’ve just signed up for a newsletter about money and other stuff. I know what you’re thinking: “WOW REAL ORIGINAL”. Please be nice, I’m sensitive. 

Give me a minute. 

Okay, I’m back. 

Despite your harsh initial summation, this email is not just a self-serving way for me to desperately seek my parents’ approval. That’s only about 95% of the reason. Each week, we’re sliding into your email DMs (inbox?) with two golden nuggets:

1. Level-up: Actually (actually) interesting and useful investing lessons (actually, I swear)

2. Level-set: A breakdown of a couple of interesting/funny/cool news stories, written so that even a court jester like me could understand

If you're scratching your head wondering, "Did I sign up for this?" Surprise! We basically did you a solid and signed you up because we're tight like that. But if you hate money, don’t want more of it, and would prefer to go back to a barter system, plz go ahead, break our hearts, and hit “unsubscribe” at the bottom.

Now, time to school you about this newsletter’s/gospel’s namesake: compound interest. 

Compound Interest: What is it, why is it, how is it, who is it

“"Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it." - Albert Einstein” - Michael Scott

Compound interest is when cash gives you cash. WOWWW was that so hard? 

You didn’t explain anything, please go on

Ugh fine. Compound interest is when you earn money not just on the original amount you saved or invested but also on the interest that amount earns over time. Picture this: you plant a money tree (your initial investment) (who sold you this tree?), and this tree starts popping cash out its ash (that's your interest) (I’m interested). This cash grows into more trees, and the cycle of life cash continues. It's like nature, but cooler because we're talking about your future yacht. Siri, play “I’m on a Boat” By Thomas Pain. 

Time, you the real MVP

Time: nobody has enough of it and it goes bad in your fridge after two days. But time in investing makes a bigly difference. Let your cash marinate, and it'll bulk up like it's been hitting a push/pull split at the gym since it was 18. Think snowball rolling down a hill - it starts small but ends up jacked/huge. Still with me? No? Moving on.

Example of Compound Interest

Imagine you give me $5,000 (thx) and I wisely (of course) put it into an account with a 5% compound interest rate each year. In 20 years, without adding any more money (rude of you), that $5,000 could grow to about $13,563. But contributing just an additional $500 per year (plz) would leave me with $29,799. This shows how powerful compound interest can be for growing your money that you give me.

Scenario 1: $5,000 starting investment

Scenario 2: $5,000 starting investment and $500 investments each year

Compound interest: chicken soup for the goal

Compound interest is especially great for long-term goals like saving for retirement or a big future expense, like that yacht Thomas Pain was singing about. Starting early, even with a little bit of money, can make a big difference over time. The longer you let your money grow, the more you'll benefit from compound interest. More time = more cash = bigger yacht for Thomas Pain. 

You’re welcome

What else is there to say? Now you know how to plant a literal (almost) money tree and invest towards something truly noble, like an Apple Vision Pro. God I want one of those dystopian/utopian ski goggles. 

Bonus!

Skim: These 3 Charts Show The Amazing Power Of Compound Interest 
Go-on: The Life-Changing Magic of Compound Interest 
Deep dive: Compound Interest: The Power of Exponential Growth 

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