The $12 Investment That Could Change Your Financial Life

The Power of Compound Growth Illustrated

Consider $12 per week — $624 annually — invested in a broad market index fund with a historical average annual return of approximately 7 percent after inflation. After 10 years: approximately $8,600. After 20 years: approximately $24,000.




After 30 years: approximately $59,000. The money invested over 30 years totals $18,720. The additional $40,000 is compound growth — returns generating returns, invisibly and automatically. The principle is not spectacular until you zoom out.