This content is provided for general informational purposes only, and is not intended to constitute investment advice or any other kind of professional advice. Before taking action based on such information, we encourage you to consult with appropriate professionals. We do not endorse any third parties referenced within the aforementioned article. Do not infer or assume that any securities, sectors or markets described in this article were or will be profitable. In addition, past performance is no guarantee of future results. There is a possibility of loss. Historical or hypothetical performance results are presented for illustrative purposes only.

The founding father of F-you money.

Let's talk about Benjamin Franklin — the unsuspecting king of kite surfing, colonial streetwear, and compounding interest.



December 14, 2023

2 min read

What's Playbook? We're your friendly step-by-step app for growing your money and minimizing taxes so you can live the life you want, sooner. Learn more

In this article

      Compounding interest, you say? Benjamin Franklin was such a superfan of 'a penny saved is a penny earned' that in 1790, he gifted $2000 to the cities of Boston and Philadelphia. But there was a catch: the money couldn't be distributed for 200 years.

      When 1990 rolled around, that money was worth over $6.5 million — Ben Franklin's ultimate lesson in compounding interest.

      Grandpa, what's compounding interest? 

      As Grandpa Benjamin once said, “Money makes money. And the money that money makes, makes money.”

      Compounding interest is “interest on interest.” Without touching your money, you earn extra dollars based on both your initial investment and the interest earned on that investment. In short, it's your money multiplying at an exponential rate.  

      This chart assumes you set aside $10,000. Over 50 years, that money could grow to anywhere from $70,000-$16,000,0000. Try it out for yourself with this compounding interest calculator.

      Compounding interest is your ticket to paradise.

      In 1748, Benjamin Franklin did something quite unusual. He retired early from his printing empire at the ripe age of 42, to let his riches compound and become a “gentleman of leisure.”

      Are you picturing Benny Franklin (if I may) on the beaches of Spanish-owned 'La Pascua Florida', with a golf club in hand? In reality, he spent his remaining 42 years as a scientist and devoted philanthropist, inventing the lightning rod, bifocals, and the ethereal glass armonica.

      Good news: You too can harness the power of compounding interest to retire early and pursue the things you love most.

      The Playbook take

      You can reach financial freedom. Retiring early isn't just attainable for Benjamin, billionaires, and the ultra wealthy. All it takes is the magic of compounding interest and a little bit of patience.

      You're already compounding in so many areas of life — your friendships, your career, maybe even your reading habits.  

      If you let your money grow over time, you could stop working and start compounding your passions, inventions, art, philanthropy, time spent with family. It's not about f-you money, it's about living your most meaningful and fulfilling life.

      No items found.
      About the author

      Team Playbook

      The app that grows your money

      Playbook is your friendly guide so you can pay less in taxes (the legal way!) and put your money in the right places automatically. Money stuff can feel hard, but we’re here to help you along the way.

      Get an airtight financial plan
      in minutes.
      Playbook is a step-by-step app for growing your money and minimizing taxes so you can live the life you want, sooner.

      In this article