Even small sums gets you started
In summer 2021, seven out of ten respondents in a Nordea survey said they don’t save because they can’t afford it. But this way of thinking might be what’s stopping many people from increasing their wealth. You should start saving immediately even if you have a small income – after all, time is money, so why waste it?
The force behind all this is what some people call the eighth wonder of the world: compound interest. It allows the total return on your investments to grow at an increasing rate year after year. Compound interest means that the interest you earn every year is added to your savings, so you not only earn interest on the savings, you also earn interest on the interest itself. In other words, even if you save a larger sum later on, it won’t have enough time to earn as much interest as a smaller sum you invest now.