Why I Started Investing at 18 (And Why It Changed Everything)

If you’re young and someone is telling you to put money away from a paycheck that barely covers your expenses, I understand why that sounds like terrible advice. I thought the same thing.

I started investing at 18. I was working entry-level jobs, and my paychecks were not impressive. My father, Ron McCoy, founder and CEO of Freedom Capital Advisors, sat me down and told me to take a small portion of every paycheck and put it into a retirement account I could not touch until I was in my 60s. My reaction was somewhere between confusion and annoyance. Setting the money on fire felt like a more sensible option.

But I did it anyway. And ten years later, I can tell you that starting early, even on a small paycheck, gives compound growth its most powerful ingredient: time.

That is what this article is about.

A Few Years Into My Investing Journey

A few years in, a few hundred dollars had grown into a few thousand. I was not impressed. At that rate, I thought it would take a century before the account meant anything.

A few more years passed. The account grew again, and at a certain point I realized I had what looked like a solid down payment on a starter home sitting in there. The thought crossed my mind to pull it out.

“Don’t touch it. You’ll regret this, I promise you.” Ron said that more than once.

He was right about the taxes and the penalties. Pulling from a retirement account early cuts into a meaningful portion of what you’ve saved. So I left it alone.

The Moment I Started Paying Attention

By my mid-20s, something shifted. I started actually looking at the account with curiosity instead of indifference. It had grown, not dramatically, but consistently. For the first time, I felt something from seeing it: satisfaction.

I sat down with Ron and said, “Okay, what now?”

We started game-planning. We knew I had decades of runway for this money to compound, so our strategy reflected that. We identified an asset we believed was significantly undervalued and out of favor, and we committed to it.

For the next four years, I watched very little happen. Ron kept saying, “Trust the process. It’s not about timing the market. Good things come to those who wait.” That is genuinely hard advice when nothing seems to be moving. But we held the position.

After years of waiting, the patience finally paid off and my investment started moving in a way I had not expected in that timeframe. The account grew faster in a short period than it had in all the prior years combined.

What This Actually Changed for Me

Before this, my understanding of early investing was roughly: “If you save a lot while you’re young, you’ll be glad later.” Which is true, but it misses the real point.

What I know now is that it is not about the amount. It is about the time. And in my case, having a strategy even at a young age.

I was not saving aggressively. I was doing what I’d call the bare minimum, on jobs that did not pay well, starting from a point where I had little investment knowledge. The only thing I did right was start, and stay consistent.

A retirement account you build in your twenties becomes the foundation that gives you real choices in your thirties and forties. That account is still one I cannot access without penalty for years. But knowing it is there, knowing it has a real strategy behind it, gives me a kind of peace of mind that no paycheck ever has. And the groundwork was laid at 18, when I was making nothing.

Start today. Future you will thank you.

Whether You’re Just Getting Started or Thinking About the Next Generation

If you are a young person looking to get started, whether you’re an entrepreneur, an athlete, or just someone with a drive to build something for yourself, we would love to talk. At Freedom Capital Advisors, helping someone get started early is one of the most satisfying parts of this work. Knowing what that foundation can grow into over time is something we do not take lightly.

If you are a parent, grandparent, or retiree looking for a family-centered investment adviser who can help the next generation get it right from the start, reach out to us. We believe every family deserves to build their own legacy, and we genuinely enjoy being part of that process.

Start with an honest look at where you stand today. Our 15-Minute Retirement Checkup is a good first step, whether you’re 22 or 62.

Frequently Asked Questions

How much money do you need to start investing when you’re young?

There is no minimum that makes early investing worthwhile. Even small, consistent contributions to a retirement account in your late teens and early twenties have decades to compound. A Roth IRA can typically be opened with a few hundred dollars, and many employer-sponsored 401(k) plans allow contributions as a percentage of any paycheck regardless of size.

Is a Roth IRA a good option for young investors?

For most young investors, a Roth IRA is one of the strongest tools available. Contributions are made with after-tax dollars, which means qualified withdrawals in retirement are tax-free. Since most young investors are in lower tax brackets now than they will be later, locking in that tax-free growth early tends to make more sense than a traditional pre-tax account.

What happens if you need the money before retirement age?

Withdrawing earnings from a retirement account before age 59 and a half generally triggers income taxes on those earnings plus a 10% early withdrawal penalty. It can significantly reduce what you have built up. This is one reason a solid financial plan includes both long-term retirement savings and accessible savings for near-term needs, so you are not forced to touch the long-term money.

Can a financial adviser help young people who do not have a lot to invest?

Yes. A fiduciary investment adviser works in your interest regardless of account size. At Freedom Capital Advisors, we work with people at various stages of wealth-building, including those who are just getting started. The earlier someone gets sound guidance, the more time their strategy has to work.

Why does starting young matter more than the amount you invest?

Compound growth accelerates over time. The longer your money is invested, the more each dollar of growth generates additional growth. A smaller amount started at 18 often outperforms a much larger amount started at 35 simply because of the additional years in the market. Time is the one advantage that cannot be bought later.

I’m saving money, what’s the biggest mistake I could make?

Not having a plan. Without a plan, your savings have no direction. You should have a plan and intentions, otherwise your money will just lose value over time due to inflation.