Key Takeaways
- Time > Money: You can earn more money, but you cannot earn more time. Time is the multiplier of wealth.
- The Cost: Waiting 10 years can cut your final portfolio in half.
- Action: Start today, even with $50.
Introduction
"I'll start investing next year."
"I need to pay off my car first."
"I'm waiting for the market to crash."
These sentences are the most expensive words in the English language. They cost you hundreds of thousands of dollars.
Deep Dive: The Math of Procrastination
The Two Investors
Let's look at two people, both saving $500/month into the S&P 500 (assuming 8% return).
- Investor A (The Early Bird): Starts at age 25. Stops investing at age 35. (Invests for 10 years total).
- Investor B (The Procrastinator): Starts at age 35. Invests until age 65. (Invests for 30 years total).
The Result at Age 65:
- Investor A invested $60,000 total. Balance: ~$787,000.
- Investor B invested $180,000 total. Balance: ~$734,000.
Read that again. Investor A put in 3x less money but ended up with more wealth. Why? Because her money had 10 extra years to compound. Those first 10 years are worth more than the last 30 years combined.
Opportunity Cost in Life
It applies to skills too. Learning to code at 20 vs 30. Learning a language. Building a network.
Every day you delay is a day the "interest" on your skill doesn't compound.
Action
The best time to plant a tree was 20 years ago. The second best time is today.
Open the account. Deposit $50. Do it now. Future you is begging you.
