To reap the most benefit from your wealth accumulation program, you need to start saving money now. If you are patient and disciplined, your money can work for you to produce astounding results over time.
The most important factor in wealth accumulation for the average working American is to have a plan to pay yourself first-before you have a chance to spend it. You need to consistently, systematically put a small amount of money away week after week, month after month, year after year.
Having a solid plan in place will allow the second most important key of wealth accumulation to work its magic: The power of compounding… the snowball effect that happens when your earnings generate even more earnings. You receive interest not only on your original investment but also on any interest that accumulates- so your money can grow faster and faster as the years roll on.
Simply stated, compound interest means that you earn interest on the original amount you’ve saved, and then you continue to earn interest on the interest. This phenomenon goes on and on, packing your savings with clout and moving you steadily toward your savings goal. That is the extraordinary power of compound interest. Over time, the results can be dramatic.
This is particularly manifested in programs that allow for interest to build on a tax-deferred basis. By using this strategy you can unlock the potential for even greater performance from your savings. When you start saving early and focus on tax-advantaged savings, you’re way ahead of the game. Tax-deferred plans give you even more money to save and invest. With more money and more time to save, there is even more power in the “power of compounding."

The longer your money is accumulating wealth, the better compounding works for you. It’s not just the fact that you give your money a chance to grow over many years, it’s also the fact that the earlier you start, the less you have to save to reach your goal. The longer you wait or the more often you stop, the harder it is to make up for lost interest earnings. The amount of money you start with is not as important as getting started early.
Procrastination is the natural assassin of opportunity. Every year you put off saving it makes your ultimate retirement or savings goal more difficult to achieve. The best news is that you can earn interest on small amounts of savings-so you can start the power of compounding today.