When you borrow money, you’ll also pay interest on top of the amount you borrowed.. Interest is the money the lender gets for loaning you the money. Read Next: 5 Subtly Genius Moves All Wealthy People ...

For example, if you invest $1,000 at an annual interest rate of 8% and let it compound yearly, you’ll earn $80 in interest after the first year. The next year, interest is calculated not just on your ...

Allowing your money to grow over time is one of the best ways to build wealth. It's possible to reach $1 million by steadily investing a portion of your income. Most experts recommend saving 15% of ...