Compound interest is the concept of earning interest on both the initial principal amount and any accumulated interest. This means that as your money grows over time, the amount of interest you earn also increases. The key to taking full advantage of compound interest is to start saving and investing early. For example, if you invest $1,000 at a 10% annual interest rate, after one year you would have $1,100. In the second year, you would earn 10% interest on $1,100, totaling $1,210. This compounding effect continues to snowball over time, resulting in significant earnings in the long run. By starting to invest early and consistently adding to your savings, you can harness the power of compound interest to accelerate your financial growth. This is why it is crucial to prioritize saving and investing, even small amounts, as early as possible. Remember, time is your biggest ally when it comes to building wealth through compound interest.