What is compound interest?
Compound interest means you earn returns not just on your original deposit, but also on the interest already added. Over time this snowballs, which is why investing early is so powerful your earliest contributions have the longest time to grow.
Why monthly contributions matter
Adding a fixed amount each month (sometimes called dollar-cost averaging) steadily increases your balance and smooths out market ups and downs. Even small, consistent deposits add up to a large sum over decades.
Choosing a realistic rate
Savings accounts typically return a few percent, while long-term stock-market averages have historically been higher but with more risk. Use a conservative estimate and remember that past performance does not guarantee future returns.