Transcription
What did Warren Buffett do at the age of 10 that most people still haven't done? Spoiler alert, it wasn't build a business empire or buy his first company. It was something much simpler. He started investing. And that one decision, it changed everything.
Buffett actually made 99% of his wealth after his 50th birthday. All thanks to something most people underestimate, time. Let's talk about what that means for you and your future and how to take advantage of the one thing money can't buy more of. Why time is everything.
If you save $200 a month into your 401k starting at age 25 and earn a 7% return, by the age of 65, you'll have over $500,000. Wait until you're 35 to start, that total drops to around 250,000. Push it to 45, you might end up with just $110,000. Same monthly savings, same investment return. The only thing that changed was when you started.
Here's why. Compound interest. Think of it like a snowball at the top of a hill. You start small, roll it down, and as it moves, it picks up more snow. The longer the hill, the bigger the snowball. That's your money in a retirement account. It earns interest. And then your interest earns interest. And over time, that momentum becomes massive.
Buffett himself called compound interest the eighth wonder of the world. And it's easy to see why. He bought his first stock at age 10. By the time he turned 30, he was worth about a million bucks. But it wasn't until after 50 that his net worth exploded. That's not luck. That's compound growth on top of consistency. And it works because he started early and never stopped.
You don't need to be Warren Buffett to build wealth. Start small, even 1% of your paycheck. Then every time you get a raise, increase your contribution a little bit more. That's the snowball strategy. Let time and habit do the heavy lifting. Every raise is just more snow on the hill.
So, what did Warren Buffett do at age 10 that most people still haven't? He started. And it's not too late for you to do the same. Now, go log into your account, check your savings rate, and give that snowball a little push. Your future self is counting on it. That's it for this week. This is Genie B 401k Ready?