See The REAL Power of Compound Interest
Click any scenario to see the numbers!
Scenario: Invest $100/month from age 15 to 25 (10 years), then STOP.
Total Invested: Only $12,000
Age 65 Balance: $588,000+
Scenario: Invest $100/month from age 35 to 65 (30 years)
Total Invested: $36,000
Age 65 Balance: $227,000
The teen who stopped at 25 has MORE money! Time > Money!
Scenario: $500/month for 25 years at 10% return
Total Invested: $150,000
Final Balance: $664,000+
Scenario: How to reach $1,000,000
Option 1: $400/month for 35 years
Option 2: $700/month for 25 years
Option 3: $1,500/month for 15 years
Goal: $2,000/month passive income in retirement
Need: ~$600,000 invested (4% withdrawal rule)
Path: $350/month for 30 years OR $650/month for 20 years
Scenario: Wait 10 years to start investing
Cost: Starting at 25 vs 35 costs you $361,000!
Lesson: Every year you wait costs MASSIVE money
What: Buy S&P 500 index fund (tracks 500 biggest US companies)
Why: Historically returns ~10% per year, low fees, diversified
How: Use Vanguard (VTSAX), Fidelity (FZROX), or Schwab (SWTSX)
Risk: Low-Medium (market goes up and down, but up long-term)
Best For: Long-term wealth building (10+ years)
What: Invest same amount every month, regardless of price
Why: Removes emotion, averages out market ups/downs
Example: $200/month every month for 20 years
Benefit: Buy more shares when prices are low, less when high
Result: Proven to beat trying to "time the market"
What: Split money between 3 fund types
Allocation:
• 60% US Stock Index (growth)
• 30% International Stock Index (diversification)
• 10% Bond Index (stability)
Why: Balanced risk and reward, globally diversified
Rebalance: Once a year to maintain percentages
What: Before investing in stocks, invest in skills
Why: Skills can return 10x-100x your investment
Examples:
• $1,000 coding bootcamp → $30K+ raise
• $500 marketing course → $2K/month clients
• $200 book + practice → new career path
Strategy: First $5K goes to skills, rest to index funds
FIRE: Financial Independence, Retire Early
Goal: Save 25x your annual expenses, retire on 4% withdrawal
Example: Need $40K/year → Save $1,000,000
Strategy:
• Save 50-70% of income
• Live below means
• Invest in index funds
• Reach FI in 10-15 years instead of 40+
Roth IRA: Invest after-tax money, withdraw tax-free in retirement
401(k): Employer retirement, often with company match (FREE MONEY!)
Strategy:
1. Max employer 401(k) match first (instant 50-100% return!)
2. Max Roth IRA ($6,500/year)
3. Max 401(k) ($22,500/year)
4. Then invest in taxable accounts
Benefit: Save thousands in taxes over lifetime
1. Earn More: Side hustles, skills, raises (offense)
2. Spend Less: Budget, cut waste (defense)
3. Invest Difference: Index funds, consistent (growth)
4. Stay Patient: Time is your superpower (discipline)
5. Never Stop: Keep learning and earning (compound everything)
Compound Interest: Earning interest on your interest. Einstein called it the 8th wonder of the world.
The Rule of 72: Divide 72 by your return rate to see how long to double your money. (10% return = 72/10 = 7.2 years)
Time in Market > Timing Market: Staying invested always beats trying to guess market moves.
Asset Allocation: How you split money between stocks, bonds, cash. Changes with age and goals.
Diversification: Don't put all eggs in one basket. Spread across many investments.
4% Rule: You can safely withdraw 4% of portfolio annually in retirement without running out.
1. "The Simple Path to Wealth" by JL Collins - Best beginner book
2. "The Millionaire Next Door" - How real millionaires think
3. "Rich Dad Poor Dad" - Financial mindset
4. "The Little Book of Common Sense Investing" by John Bogle
5. "I Will Teach You to Be Rich" by Ramit Sethi
YouTube Channels:
• Graham Stephan - Real estate & investing
• Andrei Jikh - Personal finance
• The Plain Bagel - Investment concepts
Subreddits:
• r/personalfinance - General money advice
• r/financialindependence - FIRE movement
• r/Bogleheads - Index investing
Podcasts:
• ChooseFI
• BiggerPockets Money
• The Dave Ramsey Show
Week 1: Open brokerage account (Vanguard, Fidelity, Schwab)
Week 2: Set up automatic $50-200/month transfer
Week 3: Buy first index fund (S&P 500)
Week 4: Increase income with side hustle from this toolkit
Month 2+: Never stop. Consistency is everything.
Remember: The best time to start was 10 years ago. The second best time is TODAY!