Saving and Investing: Why Time Beats Money
Most of us know we should save and invest, but it’s easy to put it off. Between day-to-day expenses and the idea that “retirement is decades away,” saving often slips to the bottom of the list.
But here’s the truth: saving and investing early isn’t just about retirement—it’s about freedom, choices, and building a secure future.
Isn’t Saving Just for Old People?
A lot of people think saving is something you do when you’re older or when you “have money.”
But the earlier you start, the more powerful your money becomes. Thanks to compound growth, even small amounts invested consistently can snowball into something incredible.
The Donut Question 🍩
Would you rather have 1 donut today… or 14 donuts later?
Here’s how it works:
- A Krispy Kreme donut today costs about $2.
- If you invested that $2 in the S&P 500 (the top 500 U.S. companies) and left it for 40 years, that money could grow enough to buy around 14 donuts—even after inflation.
That’s the power of investing. Time multiplies your money in ways that are hard to see now but life-changing later. Every time you buy anything (if you are in your twenties) its not costing you the cost of 1 but 14th potential things. 14 lunch, 14 concerts, 14 trips. Obviously this is to scale with how much time you invest but even if its only 20 years that is 7 donuts/trips/concerts. It puts spending into perspective.
George vs. Jerry: Time Wins Every Time
Meet George and Jerry.
- George invests $100 a month from age 20–30, then stops.
- Jerry invests $100 a month from age 30–50 (twice as long as George).
- George invested just $12,000 but ends up with $488,176.
- Jerry invested $24,000 and ends up with $323,025.
Even though Jerry invested more money, George comes out ahead—because he had more time. Time is surprisingly more valuable than money. Its like the turtle and the hare. Slow and steady wins the race.
Start Small and Keep It Simple
Investing doesn’t need to be overwhelming or require thousands of dollars. The focus of investing should be simply starting and being constant.
- Start with $50, $100, or $200 a month.
- Pay yourself first—set up automatic contributions before you spend money elsewhere.
- Let it double as your emergency fund and your retirement plan rolled into one.
The Time Commitment Is Tiny
- Becoming a doctor takes 35,000 hours.
- Learning an instrument? 20,000 hours.
- Training for a marathon? 120 hours.
Securing your financial future with investing? 20 minutes.
That’s all it takes to set up automatic contributions through apps like WealthSimple, Questrade, or even your bank. After that, your money works for you while you live your life. The barrier to entry is incredibly low you can almost trip over it. Get started, even if its just $10.
The Simple Steps to Get Started
- Budget – Even if it’s just $10 a month, start small.
- Save – Resist spending all your extra money.
- Invest – Put your savings into long-term investments.
- Endure – Be patient. Let your money grow (“let it cook”).
Final Thoughts
The sooner you start saving and investing, the less effort it takes to build real wealth. Don’t wait until it’s “the right time.”
Start with what you have now, even if it feels small. Time is your most valuable asset—and the earlier you put it to work, the better your future looks.
Such good examples and easy to understand.
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