This is a special post from Miranda, a freelance writer and professional blogger covering financial topics. You can find her at her blog: Planting Money Seeds.
When many of us think of interest, our thoughts go to credit cards and high interest rates. While compound interest can, indeed, be problematic, the truth is that, like so much in the financial world, interest can be a millstone or a tool.
Paying compound interest is no fun. When you are paying interest to someone else, your resources are going directly to enrich others. You receive no benefit – beyond the fact that you were able to borrow money – when you pay interest. This is why you should try to be on the receiving end of interest.[Read more…] about How to Use Compound Interest to Your Advantage and Build Wealth