All topics · Step 4: Invest every month

Compounding and time.

Growth on top of growth. Small amounts invested early can become far more than the money you put in.

Free tool

Freedom number

$
$
$
Your freedom number

Years to get there
Of the way today
Yearly income now

Uses the 4% rule: you could take about 4% a year from your investments. A rule of thumb, not a guarantee. Assumes 7% a year on average.

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Change any number and the result updates. Nothing you type leaves your device.

Remember

Three things to know.

Start early

Time does most of the work. Ten extra years can matter more than a bigger monthly amount.

Keep adding

Every monthly deposit starts its own snowball.

Don't interrupt it

Selling in a panic stops the snowball. Let it roll.

Lessons

20 lessons, 30 seconds each.

One idea per video. Swipe to see them all.

New lessons every week on TikTok, YouTube and Instagram.

Go further

Tools for this topic.

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The Start Here Kit

A one-month spending tracker and a $1 a day savings challenge. Works in Excel and Google Sheets. Free to share.

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Questions

Good questions.

What is compounding?
Your money earns growth, then that growth earns growth too. Over decades it speeds up a lot.
Is it too late for me?
No. Starting at 40 or 50 still helps. The best time to start is today.
What is a freedom number?
About 25 times what you spend in a year. Invested, it could pay for your life without a job, using the 4% rule of thumb.
Where does the 4% rule come from?
From research by financial planner William Bengen in 1994, on how much retirees could take each year without running out over 30 years.