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Beyond Passive Income: Compounding Is What Really Creates Wealth


Many people invest because they want passive income. After all, who doesn't want to earn money doing nothing? But if you use your investments to generate income early on, you could be missing out on the chance to build serious wealth.

If you forgo passive income and reinvest your earnings, you can tap into the magic of compounding. Read on to learn how compounding can grow small amounts of money into a substantial nest egg over time.

Image source: Getty Images.

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Source Fool.com

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