"Little by little, a little becomes a lot...plus compounding interest!" - paraphrasing a Tanzanian proverb
You get your first 401(k) statement that you threw a couple pebbles into and it essentially says you know, "well thanks for playing, but you still have pretty much nothing", right? (02:19)
And the great thing, unlike the crow with his little pebbles, the pebbles that we're using those amounts grow on themselves. (02:46)
Every dollar that you put in grows on the next dollar and the next dollar. So every pebble, when you do it, is going to raise the water up faster to the surface than the one before it. (02:53)
Quote for the episode: "If you were wanting to retire tomorrow, it probably wouldn't matter if you threw in a couple more pebbles. It really wouldn't. If you're retiring 30 years from now though, it certainly does matter a lot." (03:29)
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Money needs time to grow, so the longer you wait to start saving, the better chance you have of NOT being a millionaire!
Think of it like planting a fruit tree. Fruit trees can take three to five years before they start producing any fruit at all. And after that the production increases...
Recapping 12 financial concepts through the timeless medium of storytelling!
You're not going to cover everything in this series tomorrow or maybe ever. But if you take even one step forward, you are better off than before. (01:20)
So look at that gain, as opposed to just the gap that's still in...