In this episode of "The Ascent," Sam McGee from Crestmont Private Wealth dives deep into the concept of compounding—both in finance and in life. Sam explains the formula for compound interest, why consistency and time matter more than just the rate of return, and how these principles apply to everything from investing to personal habits like working out or maintaining your car. He shares practical advice on making regular contributions, the importance of discipline, and why starting early can make a huge difference. Whether you're new to investing or looking to reinforce good habits, this episode offers valuable insights for building a brighter financial future.

00:00 – Introduction: Meet Sam McGee and the focus on compounding

00:30 – Why compounding matters for all ages

00:52 – The formula for compound interest: What it is and why it’s simple

01:24 – Components of compounding: Time, rate, frequency, and principle

01:54 – Compounding in life: Gym analogy and the power of consistency

02:38 – Negative compounding: Bad habits and their effects

03:22 – Consistency in daily habits: Car maintenance and dental care

04:28 – Back to compound interest: Breaking down the formula

05:01 – The importance of time and consistency over rate of return

05:55 – Real-life examples: Clients who built wealth through discipline

06:35 – The value of regular contributions vs. lump sums

07:29 – Making financial choices: Spend, save, give, and invest

09:13 – The power of compounding over long time horizons

10:04 – The risks of market timing and the value of staying invested

12:29 – Final thoughts: Applying compounding to fitness and life

12:47 – Thank yous and closing remarks

12:50 – Wishing everyone a prosperous new year

Original Air Date: January 3, 2026 at 8:30am as heard on Boerne Radio 103.9FM

Contact:  www.crestmontpw.com 

Alec Walker in Houston:  831-280-5288 

Sam McGee in Boerne: 830-368-2898