At the start, how much you put in matters more than what it earns.
Saving first, returns later.
You are 30, with €5,000 saved and €200 a month going in. Which of these grows your pot most by 40? Put them in order. Go fast.
In the first ten years, what you put in beats the return you chase.
← Red LinesRed Line 11 of 48 The idea The numbers Try it Where it bends This game’s numbersHow strong the proof is Where it comes from
A small pot can’t earn much, however clever the choice. What grows it at the start is what you put in.
Sofia has €5,000. One more percent of return adds €50 a year. Saving €100 more a month adds €1,200. At €500,000, the same 1% adds €5,000: by then returns lead.
Early on, put your energy into the gap between what comes in and what goes out, not into hunting for the best return.
Once the pot is large, returns take over.
Worked out on this page, month by monthESMA, costs and performance of EU retail investment products
=Outside the four steps: it follows from the arithmetic
True by the sumsOn a small pot, even a good year adds little, while each month’s saving adds the same. Which one matters more is arithmetic.
- The Simple Path to Wealth J. L. Collins, CreateSpace, 2016
Checked 2 Nov 2026 · How we grade
- A Strong proof: Many good studies or long official data, from different teams or countries, point the same way.
- B Good proof, with limits: Solid studies agree on the direction, but the size varies, or the data covers few places or few kinds of people.
- C Mixed proof: Some good studies for, some against, or the evidence covers only part of the line.
- D Thin proof: Mostly one book’s argument, one survey or stories. It may be wise, but it has not been tested well.
- = True by the sums: It follows from arithmetic, so no study can overturn it. We still show what real data says.
J. L. Collins, The Simple Path to Wealth (2016). In our words, not quoted.
See it in numbers: Compounding (From Zero)
Next · Red Line 12Staying rich is a different skill.Red Line read