Retirement vs. Income

Linear growth is when you add the same amount of money to your account each day or year. On graphs, linear growth increases in a line because you are adding money in a similar and repeating amount. Exponential growth is growth that grows faster and faster every time, like compound interest. Essentially, what you are doing is raising the amount of money you put in your account to the amount of days in has been in your account. This is what compound interest does and is why the amount of money increase so quickly. Income is sort of like linear growth because when you get paid, it usually stays the same amount, so you get the same amount. Your savings are like exponential growth because they both have compound interest which will increase rapidly.