James Rothschild Nicky Hilton may have gotten a lot of money from her family, but what about the rest of us? We need to start over and make every dollar work two shifts. Imagine a snowball on top of a hill that sparkles. You can give it a little push, and at first, it’s just a clump. But with each turn, it gets faster and heavier, and eventually it’s going down the road without stopping. That’s what compound interest is. It’s a type of magic that rewards being patient more than being flawless.
For a moment, let’s forget about the boring math class. Think about this: you’re 22 years old, just graduated from college, and ramen packets are the only thing you can count on in your cabinet. You save up $100 a month and put it into a simple index fund. If those funds have an average return of 7% (which is based on history and not magic), fast-forward forty years. You’re looking at close to $250,000. Take a second look. You didn’t win the lotto; you just let time do its thing.
Now, here’s the big news. Wait ten years to start and try to make up for lost time. You think you’re outsmarting the calendar by raising that $100 to $200 a month. Your account is less than the early bird’s stockpile after forty years. No matter how hard you work in the end, the math doesn’t care. Compounding wants your time, not just your money.
Some people call it “the eighth wonder of the world.” Some people merely call it the one thing their grandparents were right about. Even tiny amounts saved up over time can add up to a nest egg. Have you ever met someone who put $25 a week into an investment account in their twenties and then forgot about it? Look at them again at fifty. They’re probably laughing with joy at what they said.
It takes time to build a skyscraper and to make money. It’s not about outsmarting the markets when you invest early. It’s about letting your money breathe and expand slowly. You will run into zombies, like market declines, unexpected costs, and the need to spend money, but those are only potholes in the road. If you keep throwing pebbles, you’ll ultimately have a mountain.
People sometimes put off investing because they think life is too unpredictable. You have to pay bills, and wages come and go. The future is as clear as a hazy bathroom mirror. But even if you don’t invest evenly, doing so whenever you can will help you develop momentum. This week, ten dollars. Next month, fifty. It’s not so much about being exact as it is about sticking with it.
One buddy says that every “investing birthday”—the day you made your first contribution—should be celebrated. Think of it as saving your future self from having to eat cat food when you retire. It’s not about stress; it’s about making choices. The excitement isn’t in big bets, but in constant, stubborn engagement.
Add some comedy, keep it light, but don’t fool yourself—early investing isn’t glamorous, but it wins the fireworks show in the end. Just go ahead and do it. Let your money work for you as you live your life. The tortoise truly does win in the end, and that shell is full of curiosity.