This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
It’s not the end of the world if you’re 40, 50, 60, or even 70 years young and haven’t invested anything. The good news is that you can still take advantage of compound interest until the day you depart the Earth.
It is well-known that compound interest is best friends with the young. The younger you are, the more time you have on your side and the less money you will need to invest over the long haul to meet your financial goals.
However, here’s the thing, despite how big of an opportunity young people have, they’re frequently dealing with lower incomes matched with student loans, bills, debt, and other living expenses.
Many young people don’t invest aggressively as they should, so they frequently end up in the same boat as everyone else.
The opportunity costs of not taking advantage of compound interest when young are high and almost painful to acknowledge.
But you can’t allow regret to prevent you from making financial progress!
You must start where you are, which is here and now! What can you invest now? $1? I bet you can invest more than 1$, and here’s how I know:
85% of Americans hold a car note.
60% of Americans eat out at least once weekly (Source: CDC).
What does this mean? It means you likely have more than $1 to spare.
One thing you might think you don’t enjoy giving up so quickly is money. But if you look at your habits, you might find that you quickly give up money on non-essential things.
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Match Your Investing With Your Spending
If you spend or throw away $500 every month on non-essentials, force yourself to find the means to invest that same amount each month.
Following this rule might encourage you to spend less. But hopefully, it doesn’t encourage you to invest less.
Whatever you’re willing to spend, you must be willing to invest. My philosophy is always to invest more than I spend.
Don’t Implement Average Habits
If you maintain habits as many people, you likely underinvest, which means you’re behind on your investing.
According to Synchrony Bank, the average 40-year-old has around $97,000 saved in their 401k.
One thing I learned is not to listen to broke people, not to imitate people without savings or investing, and not to worry about what people think about how I dress, drive, or live.
The only opinion that matters is mine.
Live like no one else, and live for no one else.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.