Ramit SethiRamit Sethi: The No-BS Guide to Living a Rich Life

When should you start investing? #money #personalfinance #financialfreedom

12 Apr 2023 · 1 min

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Ramit Sethi explains why starting to invest at 20 beats waiting until 30. Someone earning $45,000 who invests 10% early will end up with more money than someone who invests the same amount monthly from 30 to 60, thanks to compounding.

Questions this video answers

$45,000 per year.

10%.

Starting at ages 20–30 (early starter) versus investing the same amount monthly from ages 30–60 (later starter).

Chapters

Now is finally the time for me to start investing, as I finally feel like I'm just now making enough to start making a meaningful difference. She's 31 years old. This is the wrong way to look at investing. So let's say you start out making $45,000 a year out of college. Okay? That's not a lot of money to be able to put, let's say, 10%. It just does not seem that significant. But that number grows and compounds every year. And the person who starts investing from the age of 20 to 30 and just lets that money sit is actually going to have more money than somebody who invests the same amount per month from 30 to 60.