Making Money Early

The Importance of Making Money Early

Time is your best asset. The earlier you start earning and investing, the more compound growth works in your favor.

When people talk about "making your money work for you" this is what they mean. The earlier you start saving and investing, the more time compound interest has to do its thing.

Let’s say you’ve built up a $1 million investment portfolio that earns around 6% annually. That’s $60,000 a year in growth alone without doing much beyond ensuring your investments don't go against you. If you're living simply, that could fully cover your lifestyle. Even if not, that’s serious financial cushion.

Now, getting to $1 million might sound wild but here's an example that might help put it into perspective:

• If you are making around $100,000 a year and manage to save $20,000 of it annually…
• And you consistently invest that $20,000 into a portfolio earning 6%…
• You’ll hit $1 million in about 25 years.

That’s not a lottery win... that’s just steady saving, smart investing, and time. Start in your 20s and you could reach that goal before 50. Start in your 30s and you're still set up for a powerful financial future.

Now, I know not everyone can manage their financial situation to save 20% of their after tax salary and that this example is over simplifying a lot things. What I hope to convey with the above is one of the great things about financial literacy. The more you learn, strategize, and set objective financial goals, the more you can optimize your financial situation to be able to save and invest more. The key is to start early and be consistent. Additionally, Making money early matters not because you need to be rich by 30 — but because time is your greatest asset, and money made young has the most time to grow.