Over decades, this compounding effect can lead to substantial growth in wealth. The longer you leave your money invested, the more pronounced the effect becomes. This is why financial advisors often stress the importance of starting to invest early and letting your investments grow over time.

The magic of compounding is a powerful concept that highlights the benefits of long-term investing and the potential for exponential growth in wealth accumulation. It underscores the importance of patience, discipline, and consistent contributions to investment accounts to harness its full potential.