Edgar

Everyday guy explaining money in plain English & Spanish 💵 Markets, investing, saving, and a few laughs. Money shouldn't be a secret. Not financial advice.

[Edgar @MoneyNoSecret]

The Raise You Don't See: A $730,000 Difference

Two 23-year-old women start their first real jobs.

Job A: $30/hour, no retirement benefits.
Job B: $25/hour, with a dollar-for-dollar 401(k) match.

Most people take A. An extra $5 an hour feels like an obvious win.

Both live on what they earn. A gets the nicer apartment and newer car. B keeps things modest. Neither is reckless.

A plans to start saving "once she's settled." That turns out to be 33.

Fast-forward to 60 (7% average annual return):

• A invests $3,500 a year from age 33. Result: about $260,000.
• B invests $3,500 a year from age 23, and her employer adds $3,500 more. Result: about $1.12 million.

After an illustrative 15% tax on withdrawals, that's roughly $220,000 vs. $950,000. A gap of about $730,000.

Why?

1. The match. Every dollar B saves brings a second dollar from her employer, subject to vesting rules.
2. Time. Her first dollars get an extra decade to compound.
3. Automation. Her savings leave her paycheck before she can spend them.

To be fair, A could have closed much of the gap by investing from 23 and putting part of her extra pay to work. Her problem wasn't her salary. A bigger paycheck doesn't build wealth on its own. What you invest does.

The lesson: Compare the whole package, not just the hourly rate. Look at the retirement match, health insurance, and paid time off. Many plans match less, such as 50% of the first 6% of pay, but even a smaller match is free money.

A $5 raise feels good today. A match compounding for decades can change your future.

Already 30, 40, or 50? You can't get yesterday back, but you can start deciding differently today.

The best time to invest was yesterday. The next best time is today.

Illustrative only. Assumes a constant 7% return, year-end contributions, and a full dollar-for-dollar match. Actual returns, taxes, vesting, and plan terms vary. Not financial advice.

[Edgar @MoneyNoSecret]

@WiegrafSJB Congrats!

[Edgar @MoneyNoSecret]

@saylor Can someone please take his phone away. He is like trump but with bitcoin 🤣

[Edgar @MoneyNoSecret]

@RetireEarly70 🤪😂

[Edgar @MoneyNoSecret]

@NickpxJ

[Edgar @MoneyNoSecret]

@MoneyTalksTwt Hernia check: balls are bigger than average. Still waiting on the big money part.

[Edgar @MoneyNoSecret]

@VisionaryMetr1c @MikeZaccardi @DivesTech @SeekingAlpha Fair, leadership counts in fair value. But if most of the value walks out with one man, that's not goodwill, that's a hostage situation. Great companies build a bench.

[Edgar @MoneyNoSecret]

@MikeZaccardi Weakest since 2010. Nobody sitting on an old low rate wants to sell, so buyers aren't up against a bubble, they're up against a frozen market.

[Edgar @MoneyNoSecret]

@AndrewFeinberg Everyone blames the Fed, but mortgages follow long-term bond yields more than Fed meetings. If you're waiting to buy, watch the 10-year, not the press conference.

[Edgar @MoneyNoSecret]

@Bernlennials Held hostage is a stretch. A cap weighted fund owns more of what's winning and less of what's losing, that's the deal you signed up for. Worried about concentration? Equal weight funds exist. The real risk is retirees bailing on the whole thing over one bad week.

[Edgar @MoneyNoSecret]

Confession most of us won't admit:

We check the stock app at night, see red, and our thumb drifts toward Sell.

Today $NVDA fell nearly 10% before the open after its CEO resigned.

A headline is news. Panic is a feeling. Make your plan on a calm day.

Not financial advice.

[Edgar @MoneyNoSecret]

@theoptionslord Because they wait to sell it all today! 😂
For tax purposes.

[Edgar @MoneyNoSecret]

@0xBNZ So how much bitcoin are you buying today? 😂

[Edgar @MoneyNoSecret]

@0xBNZ Generational wealth is expensive I guess!

[Edgar @MoneyNoSecret]

@flippydj @LOVREGA @Support @lopezobrador_ @elonmusk Haha, ya llego el internet!! 😂😂

[Edgar @MoneyNoSecret]

@Quitstack Knowing I'm following the plan is enough. Progress isn't always visible, and results rarely come overnight. What keeps me going is the belief that every small step, even the unseen ones, carries me closer to where I want to be.

[Edgar @MoneyNoSecret]

@LauraLoomer Good for her. After 41 years of marriage, she's not taking half of his money. She's taking her half. There's a difference.

[Edgar @MoneyNoSecret]

@1Umairshaikh Intelligence has very little to do with making money. What matters more is your ability to recognize opportunities, create value, take action, and have the drive to go after what you want. Knowing what to do and actually doing it are two very different things.

[Edgar @MoneyNoSecret]

@thrivenex @elonmusk