Compounding Interest: The Eighth World’ wonder that Has a Powerful Effect on Your Life

by: Aidatul fitriyah

Since long ago, everyone has known the world’s seven wonders are the most extraordinary natural wonders and manufactured structures. Some examples of world wonder that ancient scholars proposed in the 2nd century include the pyramids of ancient Egypt, the Statue of Liberty, the Eiffel Tower. But every few years, there will always be discoveries related to the seven wonders of the world by historians. According to the results of research from a journal in Britannica which produced 100 million respondents from around the world, almost all of them agreed to upgrade back related to any existing wonders of the world and obtained from 2007 the results of a long vote were announced to determine the seven wonders of the world, namely: The great wall ( China), Chichén Itzà (Mexico), Petra (Jordan), Machu Picchu (Peru), Christ The Redeemer (Brazil), Colosseum (Italy), and the last is Taj Mahal (India).

Since its inception, there has been a debate on the eight world’s wonders; some people even propose another phenomenon to be included. One of the humans who sparked the other wonders of the world was Albert Einstein. He was a physicist who had a strong influence in the 20th century because his intelligence and innovative findings are still used today in learning theory. Albert Einstein once described compound interest as one of the eighth wonders of the world by saying, “He who understands it, gets it; He who doesn’t pay for it”.

Compound interest is the percentage gain on the principal balance invested. This concept helps accelerate the growth of such money in savings accounts. Compound interest has a working principle by calculating the principal balance and interest earned. To make it easier for you to imagine, we will try to implement it in real life. Suppose you open a savings account with a balance of $100 with bank X. The bank has an annual interest of 10% in each first year so that at the end of the first year you save, you will earn interest of $10, and your balance will increase to $110. You will get 10% interest back on the first principal balance amount and additional interest ($110). In the second year, you will get another $11 interest for a final balance of $121. It is an example with small numbers to help make understanding easier. However, suppose you find a more significant number of digits over a more extended period. In that case, you don’t need to analyse it manually because now you can take advantage of a particular compound interest calculator.

BuzzFeed reporter Amber Jamieson says compound interest accelerates wealth and a financially secure future. Based on experience, he advises everyone to start investing early without worrying about the small initial investment amount. Instead, it is better to maximise the time one has held money in the market.

Indeed, getting money to invest is not easy, especially for teenagers who are still in school and have not yet earned an independent income. However, we as teenagers can change our habits to help us invest. For example, you reduce the habit of going to cafes to buy coffee. Instead, you can look for other, more economical alternatives by making your coffee at home. If you go to the cafeteria every day to buy coffee, spending about $5, then in a month, you can raise as much as $150 without going to the café. And in a year, you already have an income of $1800. Notable, isn’t it?

Compound interest has tremendous power in influencing your finances. If you manage it well, it will help you achieve wealth. However, if you misuse it, you will experience poverty for quite a long time. Therefore, from now on, be wise in using money, starting from simple things.

References :

Dylan, J. (2021, February 24). List of All Seven World Wonders. Retrieved December 9, 2021, from

Kurniasih, W. (2021, August 25). Biografi Albert Einstein, Fisikawan Jenius di Abad 20. Retrieved December 10, 2021, from

National Geographic Society. (2021, July 20). Seven Wonders of the Ancient World. Retrieved December 9, 2021, from

Yohannes, M. (2021, December 8). Menjelajahi Daftar 7 Keajaiban Dunia yang Baru! Retrieved December 10, 2021, from




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