People tend to think that it’s difficult to start with nothing and end up a millionaire, but in actuality it’s not that difficult if you take advantage of the magic of compound interest. Business Insider recreated a chart from a David Bach book to illustrate this point. My only issues are that it assumes a 12% return every year which is a little optimistic and that it focuses on age 65 when the full retirement age for social security has now been raised to 67 to people born after 1960.
A 10% return is more probable and an 8% return is a bit conservative. I prefer to be conservative.
If you start when you’re younger is takes less money, over more time, to become a millionaire. Regardless of when you start, it’s important that you start. Having something is always better than having nothing.