Starting to invest in your 20s vs. your 30s
The 7% default is a reference, not a recommendation.
The gap after 10 years of waiting
- Contributions not made
- $30,000
- Growth missed
- $93,277
The curves
- Start now — balance
- Start delayed — balance
- Money you put in
- Money it earned
Crossover
On the start-now line, growth overtakes your contributions in year 19. Your balance is $108,558, and more of it now comes from growth than from what you put in.
Five-year steps
| Year | Start now | Start delayed | ||||
|---|---|---|---|---|---|---|
| Balance | Contributed | Growth | Balance | Contributed | Growth | |
| 5 | $17,898 | $15,000 | $2,898 | $0 | $0 | $0 |
| 10 | $43,271 | $30,000 | $13,271 | $0 | $0 | $0 |
| 15 | $79,241 | $45,000 | $34,241 | $17,898 | $15,000 | $2,898 |
| 20 | $130,232 | $60,000 | $70,232 | $43,271 | $30,000 | $13,271 |
| 25 | $202,518 | $75,000 | $127,518 | $79,241 | $45,000 | $34,241 |
If you are in your late 20s or early 30s and have not started investing yet, you may already feel behind. That feeling is common, and it is worth answering with numbers instead of guessing.
The honest answer is that starting in your 20s instead of your 30s makes a real difference, because those extra years give your money more time to grow. But "behind" is the wrong word for someone who has not started yet. The cost of a 5 or 10 year delay is real and worth seeing clearly. It is not the same as a door closing.
Use the tool above to compare your own situation. Enter your age-appropriate delay, whether that is 3 years, 5 years, or more, and look at the actual gap it creates by the time you retire. Then look at what starting today, at whatever age you are now, still gives you. Both numbers are useful. The first shows what waiting costs. The second shows what starting still gets you.
Returns are hypothetical and vary year to year, and can be negative. Nothing here is financial advice. This page exists to replace a vague worry about being behind with a specific number you can actually work with.