Understanding Nest Eggs
It is called a nest egg because it is a valuable amount of money that is set aside and invested throughout working years so that a person can have it grow over time for the purpose that they require it for.
The term originated from the practice of farmers putting eggs into the nest of hens to induce them to lay even more eggs. When you put money into a “nest egg” savings account, you are putting in that initial capital that will hopefully grow into a greater sum over time. Over long periods of time, the compounding effect will increase the funds exponentially.
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