Compounding Interest: Who Will Earn More
Starting early matters because compounding interest rewards time more than anything else.
This example shows how the earlier a person takes advantage of compounding interest, the more time that money has to grow.
Even small contributions made early can grow larger than big contributions made later, simply because they’ve had more time to compound. In short: time can be a big multiplier of wealth, and starting early gives compounding the longest runway to work in your favor.
Source: “The Madison Weekly Market Wrap”, November 6, 2025.
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