For some people, the phrase 'compound interest' conjures up dim memories of a high school teacher droning on in a quiet afternoon class.<br />But according to Business Insider contributor Jen Glantz, being unaware of the magical leverage of compound interest cost her plenty.<br />That is, until she discovered that compound interest is basically interest on your interest. She immediately changed up her savings strategy.<br />First, she moved her money out of her bank's pitifully low-yield savings account into an online high-interest account.<br /><br /> Second, she put a chunk of cash she wouldn't need for awile into a CD that compounded daily.<br />Finally, Glantz began contributing to her IRA monthly, instead of at the end of the year. That allowed her portfolio to earn even more through compound interest.
