MEPX
Chapter 4 of 10All chapters

Chapter 4 of 10

Why starting early wins

The most repeated point, with numbers.

An example

Saving 200 a month from age 25 to 35 and then stopping usually beats saving the same from 35 to 65, at typical long-run rates. Ten years of contributions beats thirty, because of when they happened.

  • Early money experiences every later doubling.
  • Missed early years cannot be replaced by larger later contributions.

The practical version

Any amount started now beats a larger amount planned for later. Consistency matters more than the size of the first contribution.