Compound interest is the concept of earning interest on both the initial investment and the accumulated interest. This means that your money can grow exponentially over time, as the interest is continually added to the principal amount. The key to maximizing the power of compound interest is to start investing early and let your money compound over a long period of time. For example, if you invest $1,000 at an annual interest rate of 5%, after one year you would have $1,050. But if you leave that money to grow for 10 years, you would have $1,628.89, almost $630 more than if you had simply earned simple interest. The longer you leave your money to compound, the greater the effect. This is why starting to invest early and consistently adding to your investments can lead to significant wealth accumulation over time. By harnessing the power of compound interest, you can make your money work for you and achieve your financial goals more effectively. Remember, time is your biggest ally when it comes to growing your wealth through compound interest.