No matter your age, spending less, earning more, and investing the difference is the way to build wealth and set yourself up for a better financial future. Even a small investment portfolio beats the pants off of being flat broke, so “it’s too late” is never a reason to not start.

That said, reaching your goals may actually be even easier than this chart shows for a few reasons!

1. These numbers are all starting from zero. Maybe you’re not. Maybe you have a 401k at work, or a small investment already started. That could give you a few years or more head start.
2. Once you start, things tend to accelerate over time. Once new investors see the traction as their investment portfolio grows, the focus gets better and income goes up. That means you can start marching to the right on this chart and investing more every month.
3. This actually accounts for inflation in the growth. Historically the stock market has returned about 10% and inflation has eroded 2-3%. That leaves a 7% “real” growth. That means you can think about the goal dollar amounts as though it spends like today.

All that said, don’t be too worried about projecting 10, 20, 30, or 40 years out. Any projections that far out will be wrong, and looking that far out is terrifying. It’s like standing at the bottom of Mount Everest and wondering how the hell you’re gonna get to the top. Don’t focus on that. Look at your feet and take a step. Keep doing that and the peak will become closer. Open an account. Invest your first $20. That’s two big steps right there.

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