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Some people seem born to study finance, and every day seems to drive them closer to a job in the field. You might recognize the type; from a young age they’ve paid attention to the stock market, read the financial news, and always seemed to be knowledgeable about the differences between stock, bonds, and mutual funds. When fellow classmates were reading about the news of the weird for mere throw away entertainment value, these people were quietly absorbing headlines that could impact the market value of particular companies.
Starting to sound familiar? Perhaps you witness a particular student frequently reading the Wall Street journal, when everyone else seems to be going on about the next upcoming party. Perhaps you are that student! Life can seem a lot different to the person who spends time learning about the time value of money concept from a young age. For starters, they simply don’t like to waste time, because they believe that it has an actual monetary value. And for anyone who is making monetary investments, that’s true.
That’s because the principle of compound interest is always at play for these people. Compound interest is a concept in which money that has been earned – for example, in the form of interest – with money, can actually earn you more money. Sounds pretty amazing, right? No less a person than Ben Franklin called it the eighth wonder of the world when he learned about the concept. So take his lead, and try to either find, or become, that person who studies financial concepts!