MMS #64 | Compounding returns: The “money makes money” episode
Mon Jan 26 2026
In this episode of Money Made Simple, Jennie and Liv unpack one of the most powerful, and not always well understood, ideas in personal finance - compounding returns.
They explain how money can make money itself over time, why the “snowball effect” is such a game-changer for long-term savings and investing, and how it can work not just for you, but also against you when it comes to debt. Using simple, relatable examples, they show why starting early really matters.
This episode covers:
What compounding actually means (in plain English)The difference between compounding interest and compounding returnsWhy time matters more than trying to perfectly time the marketA powerful example showing how starting earlier can beat investing more laterHow compounding works in KiwiSaver, managed funds and sharesThe flip side: how compounding can quietly grow credit card, loan and mortgage debtSmall, practical ways to make compounding work harder for you
Helpful money resources:
If this episode got you thinking and you want to learn more, these NZ based resources are a great place to start:
Sorted NZ – Free tools, guides and calculators to help with budgeting, KiwiSaver and retirement planning
MoneyHub NZ – Independent guides and comparisons on banking, investing, KiwiSaver and more
MoneyTalks (Free Financial Mentoring) – Confidential, non-judgemental help if you’re struggling with debt or bills
Whether you’re just getting started or need a refresher, this episode shows how tiny actions today can have a big impact on your future. Because when it comes to compounding, the best time to start was yesterday - and the second best time is today.
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Please help us share the good word (and make Kiwis richer and smarter with money) - the more we grow, the more good we can do %) Don't forget to follow, subscribe and rate the podcast if you found it useful!
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Disclaimer: This podcast contains personal opinions and is intended to provide educational information only. It doesn't relate to your particular financial situation or goals and is not financial advice or recommendations. Simplicity New Zealand Limited is the issuer of the Simplicity KiwiSaver scheme and investment funds. For product disclosure statements please visit Simplicity's website simplicity. kiwi.
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In this episode of Money Made Simple, Jennie and Liv unpack one of the most powerful, and not always well understood, ideas in personal finance - compounding returns. They explain how money can make money itself over time, why the “snowball effect” is such a game-changer for long-term savings and investing, and how it can work not just for you, but also against you when it comes to debt. Using simple, relatable examples, they show why starting early really matters. This episode covers: What compounding actually means (in plain English)The difference between compounding interest and compounding returnsWhy time matters more than trying to perfectly time the marketA powerful example showing how starting earlier can beat investing more laterHow compounding works in KiwiSaver, managed funds and sharesThe flip side: how compounding can quietly grow credit card, loan and mortgage debtSmall, practical ways to make compounding work harder for you Helpful money resources: If this episode got you thinking and you want to learn more, these NZ based resources are a great place to start: Sorted NZ – Free tools, guides and calculators to help with budgeting, KiwiSaver and retirement planning MoneyHub NZ – Independent guides and comparisons on banking, investing, KiwiSaver and more MoneyTalks (Free Financial Mentoring) – Confidential, non-judgemental help if you’re struggling with debt or bills Whether you’re just getting started or need a refresher, this episode shows how tiny actions today can have a big impact on your future. Because when it comes to compounding, the best time to start was yesterday - and the second best time is today. --- Please help us share the good word (and make Kiwis richer and smarter with money) - the more we grow, the more good we can do %) Don't forget to follow, subscribe and rate the podcast if you found it useful! Find us: Instagram Facebook LinkedIn Disclaimer: This podcast contains personal opinions and is intended to provide educational information only. It doesn't relate to your particular financial situation or goals and is not financial advice or recommendations. Simplicity New Zealand Limited is the issuer of the Simplicity KiwiSaver scheme and investment funds. For product disclosure statements please visit Simplicity's website simplicity. kiwi.