Investors? possibly you!

My mates & I are obsessed with the movie Step Brothers.

While I’m not sure what it says about us, I wanted to stay true to who I am.

Beyond just making you consider which “Step Brother” would have been better at saving money, I want you to see the true power of starting to save when you are young.

As you can see from the following illustrates, Brennan is able to accumulate more money than his brother, Dale, despite saving less money and for a much shorter period of time, simply because he let time and compound interest work in his favour.

I’ll also point out that for each brother, we are showing an annual savings of only $1,000… that’s less than $100 per month.

When discussing the power of saving $$$ I always prefer to use smaller numbers because it illustrates the reality that every dollar you are putting away now will go a long way toward the compounding growth of your net worth.

Brennan had to save a lot of money for a much shorter period of time, and still wound up with larger account just because he let power of time work in his favour.

The reason Brennan finished with more money than his brother is that all of the money he saved in those first ten years had more “TIME” to grow and compound on its own, like a enormous rock gaining more momentum as it barrels down a hill, before Dale had even starting saving. His money was already picking up steam by the time Dale started, and it was impossible for Dale’s money to gain enough momentum to catch up later on.

It is not rocket science. Just start early.