Start Early, Stay In

 

Time multiplies everything.

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Start early and your money runs longer.
Start late and you’ve got a short runway.

Time is the quiet partner.
Doesn’t complain. Doesn’t flash. Just works.

 

The secret?
Don’t interrupt compounding.
Don’t cash out. Don’t panic-sell. Let it ride.

 

Started late? Don’t panic.

You can do 1 of 2 things:

• Contribute more

• Find a better rate

But beware higher returns mean higher risk.

If you're close to retirement, avoid wild bets. You can’t afford a wipeout.

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An Example to Illustrate Time:

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To retire with £1 million by age 65 at a consistent 10% annual return, your starting point makes a massive difference due to the power of compounding.

• Person A, who starts investing at age 25, only needs to invest about £188 per month. Time is on their side, and compounding works like a silent partner for four decades.

• Person B, starting at age 45, must contribute roughly £1,455 per month. They’ve lost two decades of compounding and must make up for it with larger contributions.

• Person C, beginning at age 60, faces a harsh reality. They’d need to invest £13,650 per month to hit the same target in just 5 years—a goal that’s financially out of reach for most.

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The lesson is simple: start early, invest consistently, and let time and compounding do the heavy lifting. Delay, and you’ll pay for it with either much higher contributions or an unreachable finish line.

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 2. Amount – Add More Fuel

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The more you invest, the more that grows.
No money? Make more or save more!

 

Side hustles:

• Freelance writing

• Dog walking

• Amazon Mechanical Turk

• Deliveroo, Uber Eats

• Resell on eBay

• Babysitting

• Tutoring

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Earn. Stack. Repeat.

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Cut ‘wants’:

• Cancel Prime.

• Skip takeaway. Four orders a month is £60–£100. Do that for a year, you’ve saved £1,200.

• Workout at home. YouTube is free.

• Kill subscriptions you forgot about.

• Brew coffee at home.

• Unsubscribe from “just browsing” newsletters.

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Small cuts become big amounts.

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An Example to Illustrate Amount:

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Ben decided to save all the money he could have used for takeaway. Ben usually spends £100 a month on Just Eat. If Ben saves this £1,200 per year (that’s £100 a month) from age 20 and invests it at a 10% annual return, Ben would have approximately £862,686 by age 65.

Even modest savings, when started early and left to compound, can come close to a million. That £25 a week is not nothing!

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3. Rate – Risk and Reward

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Rate is where things get fast or dangerous.

Want higher returns? You’ll face higher risk.
It’s a trade-off.

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A cocaine dealer can double his money in a week.
He can also get shot in the head.

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Risk has a gradient:

• Low Risk: Treasury Bills

• Medium: Commodities, blue-chip stocks

• High: Penny stocks, private equity

• Extreme: Crypto, meme coins, NFTs

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The higher you climb, the steeper the fall.
Know where you stand. Know what you can handle.

If you want to see your grandkids let alone become a millionaire maybe don't deal drugs!

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A tip to always remember: Value investment is the management of risk not returns!

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How Long It Takes for Amount to Double

Rule Of 72

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Want to know how fast your money doubles?
Divide 72 by your interest rate.

• 72 ÷ 6% = 12 years

• 72 ÷ 10% = 7.2 years

• 72 ÷ 20% = 3.6 years

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Low rates mean slow growth.
High rates double faster, but come with danger.

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Warren Buffet who is recognised as one of the wisest stock market investor managed to pull it off. 20% a year for more than 50 years. He did not pull it off by travelling 200mph down the fast lane and doing crypto. He did it by being patient. Investing in the boring businesses that stod the test of time.