Money Multiplier (Investments & Retirement) - Definition, Examples, Advice | Bolder Money

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Product 1:1 Coaching Our Coaches Our Story

Product 1:1 Coaching Our Coaches Our Story

Definition

The concept that an initial amount of money can lead to a larger overall increase in the money supply through repeated spending and lending.

What to consider

Understand the power of reinvesting your earnings over time.
Consider how compound growth can boost your wealth.
Review your investment strategy to maximize this effect.

Real world scenarios

At a finance seminar, Nora learned about the money multiplier effect, which explained how a small amount of spending could lead to a larger overall increase in the money supply.

Related terms

Investments & Retirement

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