Why Starting Early Is the Key to Growing Your Wealth

Travis Hadden
Mar 20
3 min read

Investing early lets compound returns grow your wealth over time, while delaying your investments can slow your progress toward financial freedom.

Start Investing ASAP

Ever look at your financial goals and think, "I should’ve started saving or investing earlier"?

Since we can’t change the past, the best thing we can do is start working toward our goals today. Don’t worry if you didn’t start early. There are still plenty of options.

But if you’re young, trust me, start now. Ignore the ups and downs of the market and just get started. The earlier you begin, the more time your money has to grow.

The Magic of Compound Returns

Here’s a quick breakdown of how compounding works:

You invest some money.
That money earns returns.
Those returns also start earning returns.
Repeat for years, and before you know it, your money is making money for you.

Let’s say you start saving $200 a month at age 25 with an average return of 6% per year. By the time you turn 65, you will have invested $96,000, but thanks to compounding, it will have grown to over $400,000.

Now, here’s where it gets interesting:

If you wait until 35, you’ll need to save $300 more per month to catch up.
If you wait until 45, you’ll need to save $700 more per month just to hit the same goal.

The earlier you start, the easier it is to hit your financial goals without having to sacrifice as much later on.

Start Investing at 25 and Retire with 4x More Money

The Opportunity Cost of Every Financial Decision

Every time you spend money, there is an opportunity cost. That means asking yourself: What if I had invested this money instead?

That $200 dinner and drinks tab? A fun night, but if you had invested that money instead, in 30 years, it could be worth thousands. The same goes for impulse buys, new gadgets, and all those little expenses that add up.

This doesn’t mean you should never enjoy your money. Smart financial choices are about balance, living well today while making sure future you is set up for success.

How Much Do People Actually Have Saved for Retirement?

A lot of retirement stats are misleading because they include “super-savers,” people who stash away way more than the average person. That’s why it’s better to look at the median savings (the middle number) instead of the average (which gets skewed by big savers).

For Americans aged 65 to 74, the median retirement savings is around $200,000. Sounds like a decent chunk of change, right? Well, not exactly.

Most experts estimate you need at least $1 million to retire comfortably in the U.S., depending on your lifestyle. Yet, 64% of U.S. adults are behind on their retirement savings (according to the National Institute on Retirement Security).

What This Means for You

If you’ve already started saving, keep going. If you haven’t, start now. Even small amounts add up over time, and your future self will be grateful you took action today.

This is where financial planning comes in. The key to financial freedom isn’t just making money, it’s about smarter decision making with the money you have.

Retirement might feel far away, but the financial decisions you make now will shape how you live later.

Let me know your thoughts in the comments. Have you started saving yet? What’s been your biggest challenge?

Be sure to explore our other blog posts on cutting back daily expenses, like your coffee habit, or finding ways to save on your home-buying journey.