Let's See Daily Compounding In Action - 4.19.2020

Let's See Daily Compounding In Action - 4.19.2020


Hey gang! I hadn't had much inspiration for content this weekend so I decided to dig really deep this time. 

For those that follow along somewhat closely you will know that Worthy compounds interest daily within the account. It also applies it daily. This is the next best thing before continuous compounding. 

Basically, each day I am getting a tiny amount added back into my Worthy account. And then the following day, compounding is done again in the new amount resulting in even more interest added back into the account. 

Over time, this effect begins to snow back extremely quickly. It may sound insignificant as first, but interest always feels that way. Depending on which side of the coin your on, that could be a good or bad thing!

But enough jabbering, let's take a look at what this really means and how it has affected my portfolio. I'll just include two screenshots to help you are what I am referring to. These break down a certain time frame as well as the bonds held during this period, and it also shows an average interest earned. Notice how it keeps increasing a little each time even though I am still only at 249 bonds. That's the power of compounding!

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I hope this little anecdote if the power of compounding can be used as proof that even daily compounding in a small amount can grow into something huge is given the chance!

Leave any comments questions and concerns below!

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CryptoSnarf
CryptoSnarf

Snarf, but with a hint of #crypto


Personal Finance and Investing
Personal Finance and Investing

I really enjoy talking about personal finance. I like to share my insights with others' as well as learning from others. I also like to share my financial and investing journey with other people.

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