Financial independence is often portrayed as a complex maze reserved for Wall Street insiders, but the reality is far more accessible. In this episode of Everyday Money Heroes, Nik Johnson breaks down the mechanics of wealth creation through the lens of compound interest. Many people struggle to grasp the difference between an Annual Percentage Rate (APR) on debt and an Annual Percentage Yield (APY) on investments, yet this single distinction determines whether you are paying for someone else's lifestyle or building your own.By utilizing the average historical returns of the S&P 500, we can mathematically prove that a simple daily habit—investing roughly the cost of a lunch—can lead to millionaire status. We move past the myths and dive into the actual data provided by official resources like Investor.gov. The secret isn't a "get rich quick" scheme; it is the patient, consistent application of what Albert Einstein famously called the eighth wonder of the world. Whether you are currently managing credit card loans or looking to start your first investment account, understanding how money makes money is the first step toward sovereignty.The BreakdownThe Interest Binary: Every transaction has two sides; you are either the one earning interest or the one paying it.APR vs. APY: Why your credit card debt works against you (APR) while your investments work for you (APY).The $10 Milestone: A step-by-step walkthrough showing how $10 a day results in $1,000,000 over 35 years.The 10% Benchmark: Using the S&P 500 average to set realistic expectations for your portfolio.The "J-Curve" Reality: Why most investors quit in the first five years and how to push through the "boring" middle phase.Key Moments01:13 – Introduction to Everyday Money Heroes 02:44 – Defining Interest: Investments vs. Debt 04:35 – Simple Interest vs. Compound Interest 06:56 – Live Demo: Navigating Investor.gov09:45 – The 35-Year Roadmap to $1 Million 13:02 – How to shave 7 years off your retirement 15:26 – The Warren Buffett rule for savingUse the Calculator: https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator