Imagine twins. Let’s call them Alex and Jordan.
Alex decided to start saving early. From age 30 to 40, he consistently invested $500 each month. Then life happened between kids, career, getting their first home, and the contributions stopped. But Alex left his early savings untouched, allowing them to quietly grow by compound interest.
Jordan, on the other hand, waited to invest. The intention was always there, but between medical school loans, travel, and the general pace of life, savings were pushed down the priority list. Finally, at age 40, Jordan started getting serious and began investing the same $500 per month as Alex had years before. And Jordan paid $500 faithfully each month for 20 years.
Which twin had more when they hit 60?
Are you ready? Alex was the winner. He had $271,000… $40,000 more than Jordan’s savings of $231,000. Even though he hadn’t put an additional penny in for 20 years!
Despite saving for only half as long as Jordan, Alex came out ahead.
Yep. Even with only 10 years of regular investing – he still beat his twin.
The reason?
Time.
Jordan may have invested twice as much money overall, but Alex’s savings head start proved more powerful than Jordan’s catch-up.
Are You Stuck In I’ll-Start-Saving-Someday Mode?
Part of our challenge in delaying investing is psychological – we simply don’t see our future selves being nearly as important as today. Your future self gets the benefit of all the savings and can retire, but it’s the YOU today who gets stuck with the bill.
Even though you’re the same person, it somehow doesn’t feel right, does it?
But one day (and sooner than you think!), that future self becomes your present self. But if you’re not saving now?
Your future self is going to have huge regrets.
The secret?
Start small.
Move past your inertia and start saving, even if it’s a small amount. As you get comfortable and stop noticing the payment, increase it further. Watching your investments grow builds not only a strong habit, but you’ll be happier knowing you’re well on your way.
But one day (and sooner than you think!), that future self becomes your present self.
Discipline is needed until habits are formed. You’re a doctor and you certainly didn’t get through med school without good discipline or habits. And habits are needed until your lifestyle develops.
Don’t feel guilty about what you haven’t saved yet.
The hardest part is simply starting, so just start small and build from there.
Future YOU will be thrilled!
Enjoyed this article? I’d love to hear from you! I’m always interested in hearing about the unique financial situations doctors have. Send me a note! And make sure to check out my Amazon bestseller, The Doctor’s Handbook: 5 principles of wealth you weren’t taught in med school.
