Compound Interest

How Your Money Grows Over Time

Author

Mike Klinzing
September 24, 2025

Hey Coach,

Why Coaches Overlook Compound Interest

Coaches are masters of long-term development. You know success comes from daily habits stacking up over years.

But many coaches underestimate how this same principle applies to money.

👉 Too many wait to “start later.”
👉 They chase big wins instead of small, steady gains.
👉 They forget that time is their most powerful teammate.

The truth? Compound interest is like having your assistant coach working 24/7, even while you sleep.

What Is Compound Interest?

Compound interest = earning interest on your interest.

Instead of your money growing in a straight line (simple interest), it grows like a snowball rolling downhill - bigger and faster over time.

Example:

  • $200/month at 8% for 30 years = $270,000 invested

  • But with compounding → $300,000 in growth

  • Total value = $570,000

That’s the magic: time multiplies small contributions into huge results.

Why It Matters for Coaches

🏀 You don’t win championships in one practice.
🏀 You don’t build culture in one meeting.
🏀 And you don’t build wealth in one paycheck.

Compound interest rewards the coach who starts, stays consistent, and gives it time.

How to Harness Compound Interest

  1. Start Now, Even Small
    $50–$100/month matters more than you think. The earlier you begin, the less you need to contribute later.

  2. Automate Contributions
    Put your savings/investments on autopilot so compounding works without you thinking about it.

  3. Use Long-Term Accounts
    403(b), Roth IRA, Traditional IRA, and brokerage accounts all allow compound growth.

  4. Reinvest Dividends
    Don’t cash out earnings - let them keep building your snowball.

Coaching Analogy

Think of compound interest like player development:

  • Freshman year = small, quiet gains.

  • Sophomore year = skills start to show.

  • Junior year = momentum builds.

  • Senior year = star player.

Each year builds on the last. That’s compound interest in action.

📝 Coach’s Challenge This Week

Open one account (403(b), Roth IRA, or brokerage) and set up a recurring contribution - even $50/month.

Then commit: you won’t touch it. You’ll let time + compounding do the work.

👉 Forward this to a coach who says, “I’ll start saving when I make more.”
Compound interest proves the best time is always now.

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Coach Mike Klinzing
Founder, Wealth4Coaches
"Coach smarter. Save better. Live freer."