Compound Interest

Definition

Interest calculated on both initial principal and accumulated interest, causing money to grow exponentially over time.

Related Terms

APY (Annual Percentage Yield)

The effective annual return on savings or investments including compound interest, showing actual earnings over a year.

FAQs

How does compound interest help gig workers?

Early retirement savings compound over decades, turning small contributions into significant wealth.

Similar Terms

Cash Flow

Movement of money in and out of your gig business, important for managing variable income.

Variable Income

Income that changes from period to period, typical for gig workers.

Emergency Fund

Savings for unexpected expenses or income gaps, especially important for gig workers.

APR (Annual Percentage Rate)

The yearly interest rate charged on borrowed money or earned on savings, including fees, expressed as a percentage.

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Last updated: January 18, 2026

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