A Set on edgi
How Money Actually Grows
Nobody gets rich picking well. They get rich by starting early and not spending the difference.
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Compound Interest
Compound interest adds earned interest back to your starting principal, causing savings and debts to grow faster over time.
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Index Fund
An index fund mirrors a published market list instead of picking stocks, cutting fees and reliably outperforming most active managers over time.
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Inflation
Inflation is a general rise in the average price of goods and services across an entire economy.
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Dollar-cost averaging
Dollar-cost averaging invests a fixed sum on a set schedule, automatically buying more units when prices fall and fewer when they rise.
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Lifestyle creep
Lifestyle creep occurs when higher income leads to higher spending at the same rate, turning optional luxuries into perceived daily necessities.
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Net worth
Net worth is the total value of everything you own minus everything you owe.