We often underestimate the incredible power of compound interest. The principle is simple, yet almost magical: you don’t just earn interest on your initial investment, you also earn interest on the interest you’ve already received. This snowball effect allows money to grow faster and faster the longer you let it work.
Imagine we invest €1.000 today and add €83 every month. If that money earns an annual return of 8% for 10 years, the total capital will grow to about €17.404. That is far more than the sum of our deposits alone.
But here’s the fascinating part: in year 9, the annual interest generated by the capital surpasses our yearly contribution of €1.000. From that moment on, our money is working harder for us than we are for it.
The graph below makes this turning point visible. It is the moment when the engine of compound interest truly shifts into high gear.
At Vaugnity, we recognise that this principle is not new. The world’s wealthiest families have been applying it for generations to grow their fortunes. The difference is that they often use it for personal gain.
We want to use the very same financial logic—but with a different purpose. Our mission is to shift the flow of wealth, directing returns not toward luxury or excess but toward projects that transform lives. Projects that fight poverty, hunger, and modern slavery, and that create opportunities where they are most needed.
The idea that every euro we invest today can, in the future, generate more than what we contribute each year fills us with both hope and determination. Because when we use the rules of finance wisely and ethically, together we can create impact far beyond ourselves.
This is the path we choose at Vaugnity: to first invest wisely, and then use the returns to support projects that drive long-term change. In this way, we build a model that sustains itself and that amplifies its impact year after year.
We invite you to join us in making this difference.
Discover how you can contribute via our Make a Difference page. Every contribution today has the potential to grow into a force much greater than we can imagine ten years from now.