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.