Magic of compounding: You must have heard the term power of compounding mentioned many times by personal finance experts. If we understand the meaning of compounding in simple language, then it is interest on interest and a rapid increase in your wealth. That is, compounding is the process in which you earn more interest on the interest already deposited. If you want to take maximum advantage of compounding, then for this you have to maintain patience in your investment. If you are really able to do this, then the real magic of compounding will be seen. Here, we are giving information about a rule of compounding called the 8-4-3 Rule through which after a time your wealth will increase in a big way!