What if I told you the financial decisions you make before you turn 25 could shape your future more than your career path, where you go to college, or where you live? 

I’m not exaggerating. 

It’s the subtle power of investing early, and it could be the difference between financial stress and financial freedom for decades to come. 

The Power of Compound Interest

Albert Einstein is often (and perhaps mistakenly) credited with calling compound interest the “eighth wonder of the world.” Regardless of who said it, the truth stands: Compound interest is powerful. But what is it? It’s what happens when your money earns interest, and then that interest earns more interest over time. 

Imagine two people: Mia and Jake.

• Mia starts investing at age 18. She invests $2,000 a year for 10 years, and then stops. By age 28, she has put in a total of $20,000.
• Jake starts investing at age 28. He invests $2,000 every year until he reaches the age of 65. He reaches $76,000 in total contributions. 

Who do you think will end up with more?

Assuming both earn a 9 percent annual return, which aligns closely with the S&P 500’s 30-year historical average, Mia, who stopped investing at 28, ends up with nearly $670,000 by age 65. Jake, on the other hand, starts investing at age 28 and contributes the same monthly amount until he turns 65. Despite investing for 27 years longer than Mia, he still ends up with less than her, around $515,000. That’s a difference of over $150,000! 

Now, this doesn’t mean that you should stop investing once you hit 28. It simply highlights the power of starting early. The sooner you begin, the more time your money has to grow, and the harder it works on your behalf.

To put it another way, imagine someone gives you two choices: take $1 million right now, or take a single penny that doubles in value every day for 30 days. At first, the penny seems like a joke — after five days, it’s only 16 cents! But if you stick with it, by day 30, that little penny grows to over $5.3 million! 

Why? Because of compound interest — your money earns money, and then that money earns even more. It’s like a snowball rolling downhill, rolling faster and faster as it goes. That’s the power of starting early and letting time do the work. 

If you remember anything from this article, let it be this: Time matters more than the amount.

Start Early, Not Perfectly

Many people think investing is something you do when you’re much older, or once you have your “dream job.” But by then, you’ve already lost your most valuable asset: time. 

Proverbs 21:20 (ESV) tells us, “Precious treasure and oil are in a wise man’s dwelling, but a foolish man devours it.” In other words, wise people save and prepare; they think in the long term. That’s what investing is. It’s choosing tomorrow over today. 

You don’t need to know everything. You just need to start. Start with a Roth IRA —a type of retirement savings account where contributions are made with after-tax dollars. Start with $25 a week. Start with your first paycheck. Start. 

Don’t Invest Until You Do This First

Before diving headfirst into the stock market, pause. Wise financial stewardship involves more than just investing; it’s only one piece of your financial puzzle. 

Build an emergency fund.

An emergency fund is your first safety net. If your car breaks down or you lose your job, you don’t want to pull money from your investments or take on debt. Aim for $1,000 as a starting point for your fund, then build toward 3-6 months of expenses over time. 

Proverbs 6:6-8 (ESV) says, “Go to the ant, O sluggard; consider her ways, and be wise. Without having any chief, officer, or ruler, she prepares her bread in summer and gathers her food in harvest.” Even ants save ahead for when life gets hard. 

Get out of debt. 

If you’re carrying credit card debt or high-interest loans, it’s wise to press pause on full-scale investing and focus on aggressively eliminating that debt. Why? Because the average credit card interest rate sits at around 20 percent, nearly double the historical return of the stock market. Paying off that kind of debt is a guaranteed return on your money. 

That said, if your employer offers a retirement match, make it a priority to contribute at least enough to receive it. A company match is one of the most valuable benefits you can receive — it’s part of your compensation. For example, if your employer matches 3% of your salary and you contribute 3%, they’ll add another 3% on your behalf, effectively doubling your investment. That’s a 100% return with zero risk. No traditional investment offers that kind of immediate gain. Skipping the match is like turning down part of your paycheck.

Debt is not only a financial issue, but a spiritual one. Proverbs 22:7 (NIV) reminds us, “… the borrower is slave to the lender.” Unnecessary debt can restrict your freedom to give, serve, and follow God’s calling. 

That said, not all debt is bad. In today’s world, some forms of debt, like a reasonable mortgage, can be wise financial stewardship. The key is to approach any borrowing prayerfully, with a plan, and a commitment to avoid letting it control your life. 

Where to Begin: A Quick Checklist

If you’re ready to start investing, here’s what you need to know:

Open a Roth IRA.

A Roth IRA allows your investments to grow tax-free, making it an ideal option for young people who are in lower income brackets. You can easily open one through reputable brokerage firms, such as Charles Schwab, Fidelity, Vanguard, etc. 

Consider index funds or robo-advisors.

Since many financial advisors require a minimum portfolio balance of at least $100,000 (some even $250,000), working with one may be out of reach for most young investors. Low-cost options, such as index funds and robo-advisors (digital platforms that use computer algorithms for financial planning), are a great place to start. They offer broad market exposure, built-in diversification, and eliminate pressure of picking stocks, making investing simple, accessible, and affordable.

Automate it.

Set up a recurring transfer, even if it’s only $10 a month. Like in the previous example with Mia and Jake, that amount starts to add up over time. 

Avoid get-rich-quick schemes.

Crypto hype, meme stocks, and TikTok “finance experts” may sound exciting, but Scripture reminds us that “wealth from get-rich-quick schemes quickly disappears; wealth from hard work grows over time” (Proverbs 13:11). 

Keep learning.

Follow biblically wise financial voices, such as FaithFi: Faith and Finance, Compass Financial Ministry, Crown Financial Ministries, and Christian Money Solutions. Lean on trusted adults within your circle for any financial questions you may have.

It’s Not About Getting Rich

Let’s be honest: Many people are drawn to investing because they dream of early retirement, luxurious lifestyles, or never having to work again. But that’s not the goal for a follower of Jesus.

As Christians, we don’t invest so we can build bigger homes and endlessly buy more things that we think will buy us happiness (Luke 12:13-21). We invest to steward God’s resources wisely. The money we manage isn’t ours, but His. And our aim isn’t ease or excess, but faithfulness. 

The true goal is freedom, to serve others, to give generously, and to glorify God with every dollar He entrusts to us. That’s biblical stewardship: using what we’ve been given to reflect the heart of our generous Father in Heaven. 

You likely won’t strike it rich overnight, and you may never make headlines with your portfolio. But if you start early, stay consistent, and keep your eyes on Christ, you’ll gain something far more valuable: peace of mind, a life of purpose, and the deep joy of using money as a tool for God’s Kingdom.

So don’t wait. Start now. Not to get rich, but to be found faithful (1 Corinthians 4:2). Your future self will thank you.

This article was originally titled “Clocking Wealth” in the January 2026 issue of Peer.