3. Start now. Start again tomorrow
Compound interest is the secret to getting rich slowly. The way to maximize the power of compounding is to start today and stay consistent. If you hope to reach $2 million in retirement savings and start investing at age 22, you can hit your target by saving less than $6,000 a year. Wait until you turn 40 and things have gotten much tougher, requiring roughly $26,500 in savings per year.*
*Assumes an investment return of 8% and retirement at age 65.