The math on investing is pretty awesome. Saving just $254/month from age 20 to 65 will get you to a million bucks. This assumes a 7% return which is a reasonable inflation-adjusted projection. (You can think of the $1M in today’s dollars) Over that time, you actually only saved about $140K. The other $860K comes from investment growth! That’s why “investing early and often” is so important!

But I often hear from people (everyone) who feels behind. Here’s a chart to give you an idea of if/how much you’re behind by. Sometimes you’re not really behind at all. Have $90K across your IRAs, 401ks, and brokerage accounts by 35, you’re actually on this pace! And you’re probably investing more than $254/month too, meaning you’re on pace to have more than $1M at 65!

If you’re behind these numbers, that’s ok too! You’re CURRENTLY READING THIS which probably puts you ahead of 90% of Americans. But if you’re behind these numbers, that means to catch up it’s gonna take more than $254/month. But the good news is that when you’re later in life you often have some advantages, like having less debt, a higher paying job, more focus, etc. The strategy later in life is no different. If there was a shortcut to get you there faster, we’d all be taking it. The difference is you just gotta put in more money! Ramp up that saving/investing rate to get where you wanna go.

As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.

-Jeremy