The Power of Consistent Saving and Compound Growth

Starting with Mr. Mario's advice, saving $100 a month can lead to significant wealth growth over time.

### The Power of Saving and Investing Early: A Case Study on Building Wealth
* 💰 " Mr. Maro shared the **power of compounding growth** by advising students to **save and invest $100 a month** to become **millionaires by retirement**.
* 🚶‍♂️  Taking the first step, even with a **small amount**, can create **momentum for meaningful change** in various aspects of life.
* 🐿️  In a case study, Alvin saved **$500 a month from ages 20 to 30**, Simon started saving **$500 a month at 30 and continued until 60**, and Theodore consistently saved **$500 a month starting at 20**.
* 📈  Alvin, who only invested $60,000 over 10 years, saw **94% of his retirement portfolio's value come from growth**, ending up with **over $1 million**.
* ⏳  Time is the most powerful ingredient in wealth building, making it **crucial to start early and be consistent**.
* 🐿️  Simon, who saved **three times more than Alvin**, ended up with **$745,000 at retirement** due to starting later.
* 🚀  Theodore, the consistent saver who invested the most at **$240,000**, saw his portfolio grow to **$11.75 million** by retirement.
* 📅  The key takeaways are to **start investing as early as possible**, **do something today no matter how small**, and **automate the wealth-building process to make it consistent and inevitable**.

[Music] all right Bron let's jump into the first one. This one is decision number one. I'm going to give you credit for this one although I had a similar experience. You said saving $100 a month. What's the story there? What was the decision that was made? Oh Mr. Maro in that economics class wasn't even part of the curriculum but Mr. Mario walked in one day and I don't know if this was out of financial his own Financial regret or if he just learned the power of compounding growth but he walked in one day and said guys if every one of you would just save and invest $100 a month you'd be a millionaire by the time you retired and I remember going whoa what are you talking about and you guys know we have a wealth multiplier if you go to money.com resources that will show you exactly what every dollar in your army of dollar bills has the potential to become and that's exactly what Mr. Mar was talking about $100 a month really

can change your life. Well, I think when you and I were talking, pretty sure you said, Here's the reason why this was so big. What this did for me is it got me started. It got me to make that first step. And that's so true about a lot of things in our lives. If we want to see meaningful change, whether it's working out or paying off debt, or some task that maybe you don't want to do, if you can just make that first small step, if you can make that first inch forward, it's amazing how you can build up momentum. And for you on your wealth-building journey, it was recognizing that first $100. It got you started moving in that direction. It's almost like if you can give me a little bit, just a little bit of discipline, a little bit of today, you can have that great big beautiful tomorrow. And we have a case study to kind of highlight this. Yeah, so let's think about three different savers. Let's think about Alvin, who's the go-getter. Let's think

about Simon who's the Late Bloomer, and then let's think about Theodore, the consistent. Okay, give everybody a moment to process those names because when we were doing show prep, I was like, guys, don't go through this slide too fast because I had too many positive things flood my mind. Okay, now we can go through the case study. All right, so Alvin, he's the go-getter. He decides he's going to invest from ages 20 to 30. He's going to invest $500 every month from the time he turns 20 till the time he turns 30, and then he's going to stop. Well, then you're G to have Simon, the late bloomer, and he says, you know what, I'm going to enjoy my 20s, and I'm not going to start saving until I'm 30, but I'm going to do it all the way until I'm 60. So I'm going to save for a nice long time. And then there's Theodore who says, you know what, I could probably do both of those. What

does it look like if I start at 20, and I just keep saving. And these three, they do not save more, they save the same dollar amount every single month for their entire savings career. Well, how does this actually play out? Well, if we look at Alvin, you can see that over his lifetime he only invested $60,000, and he only did it for 10 years. $500 a month for 10 years, $60,000, but by the time he got to retirement, when he got out into his 60s, his portfolio was worth over $1 million. Hey, before you kind of start showing, comparing, and contrasting, I want people to notice a very beautiful thing about compounding growth. Do you realize when you see $60,000 could turn into a million dollars, seven figures of wealth? 94% of that is going to come from just the growth in the account, not your contributions, those were the starting point, but the building upon itself. 94% of the account value is actually the

growth that's powerful stuff. So if Alvin looked that good, surely Simon has looked better 'cause he saves so much more money. Remember, he started saving at 30 all the way out to late 60. Well, here's what Simon did. Simon actually invested a total of $180,000. That's three times more than Alvin. But when he got to retirement, when he got to financial Independence, his portfolio was only, air quotes, worth $745,000. So he saved three times as much but ended up with a quarter of a million less. It's almost like when I talked about the three ingredients to wealth building. When we talk about the discipline that actually creates the margin that leads to having the money, that's the second ingredient. The most powerful of the three ingredients though is time. Time is your friend. That's why do not sleep on the wealth multiplier money.com resources. You can see what a dollar can become for you. But Bo, wait, there's more. Let's check out Theodore. What did Theodore do? He started saving at 20 and saved all the way out until

age 160. And what you can see is that Theodore invested the most. He invested $240,000. But he was consistent. So, by the time he got to retirement, his portfolio is worth $11.75 million. Almost a multi-millionaire by only saving $500 a month. So, if you can figure this out early and you can start early and you can be consistent, the future is yours. You can be like Theodore. So, let's summarize this case study and talk about what you can do if you apply this to your financial life. The first thing is the best time to invest was, of course, yesterday or last year. But you know what the next best time is? Right now, today. Give me a little bit of today for that Great Big Beautiful Tomorrow. Do something today. I love it. That's exactly the second point. Just do something. Maybe you can't save 25% like we say. Maybe you can't even max out your Roth IRA yet. But I bet you can invest $20 or $50 or $100.

a month. And just doing something will start that snowball rolling down the hill to give you the need momentum to turn into a financial mutant. So just do something and do it today. And then I love cuz this is what Theodore really maximized always be buying if you can automate the wealth building process you actually create an inevitable wealth opportunity. If you can make the easy habits or the good habits, I should say, as easy as possible, that is going to make this even more consistent and possible and probable for you as a financial mutant.

Why Saving $100 a Month Changed My Life (And Can Change Yours, Too!)

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The Money Guy Show

Mario's advice to save $100 a month can lead to millionaire status through the power of compounding growth.

Taking the first step in saving and investing can create momentum for meaningful change in one's financial journey.

This strategy illustrates how a little bit of discipline today can lead to a financially secure tomorrow.

The Power of Compound Interest: A Case Study

Alvin invests $500 a month from age 20 to 30, then stops, but his portfolio grows to over $1 million by retirement, with 94% of it from growth.

Simon starts saving $500 a month at age 30 until 60, and Theodore saves the same amount from age 20 and continues, resulting in different investment outcomes for each.

The Impact of Saving and Investing Over Time

Simon saved three times as much as Alvin but ended up with a quarter of the money at retirement, highlighting the power of time in wealth building.

Theodore, who started saving early and was consistent, became a multi-millionaire by only saving $500 a month.

The key takeaways are to start investing as early as possible and to take action, even with small amounts of money.

Taking action is the key to starting the financial growth process.

Automating the wealth-building process can lead to inevitable opportunities.

Making good habits as easy as possible increases consistency and probability in becoming financially successful.