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6 Investing Key Concepts — In Plain English

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Personal finance is full of concepts that can intimidate newcomers. In reality, being smart with money doesn’t require being a mathlete or getting an MBA.

Many complex-sounding financial concepts are actually quite simple, and understanding how they apply to your finances can pay huge dividends.

Here are six financial concepts explained in a straightforward way.

1. Compound interest

For savers, compound interest is like fuel to a flame. The mathematical magic happens when your principal balance earns interest — which then becomes part of your principal, allowing it to earn interest itself, and the cycle repeats. (Experiment with this compound interest calculator to see the magic in action.)

Why it matters: Putting money aside — even...

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