How can you make your money grow by itself? Simple: put a percentage of every dollar you earn into an interest-earning account and decide not to touch it.

Interest is calculated on what’s in the account, then you can add that interest to the original amount, or the ‘principal sum.’ When the interest is eventually calculated again, it will be more than the previous interest and you’ll add that to what’s in the account….and so it goes. This cycle of interest and growth is called compound interest.

In Smart Way #48 of Making It on My Own; 52 Smart Ways to Smash It in the Real World, I explain this process to you in detail. But for now, know that savings can and will grow themselves.

Einstein called compound interest the ‘eighth wonder of the world’ and for good reason. When it’s applied to your savings (rather than your debts) it supercharges the accumulation of money. The great scientist said, ‘He who understands compound interest earns it and he who doesn’t understand it pays it!’

Because of this, many countries have compound-focused, compulsory retirement savings schemes that the government adds to as well. In New Zealand you can choose to opt in to Kiwi Saver; learn more at In Australia, it’s called the Australian Superannuation Fund; see more at

With the above in mind, I strongly recommend you start your own long-term retirement fund as soon as possible to make the most of your hard-earned money