A very small percentage of employees put in enough effort to navigate a better path to wealth and expedite their journey toward a stage where their investments generate substantial passive income—enough to cover monthly expenses for life. They dream of becoming financially independent and plan to retire in their late 30s or mid-40s, so they can work out of joy rather than necessity, or even work on their own terms. Imagine the happiness and empowerment that come with working purely for fulfillment. Life becomes beautiful when you can manage your time without sacrificing 8 hours a day to serve someone else.

However, in reality, a large percentage of employees end up working into their mid-sixties or even longer, often out of necessity.

Is it possible for any employee, regardless of income level, to join the small percentage who retire in their 30s or 40s?

The answer is absolutely yes. Every employee, regardless of income, can achieve financial independence and retire early. Whenever I bring this up in conversations with friends and colleagues, they often disagree, insisting that early retirement is nearly impossible.

So, what makes me 100% certain that almost any employee can retire early if they follow the right path to build wealth?

As a child, I loved math because it felt like a workout for the brain. Math taught me that every problem has one correct answer, though there may be several ways to reach it. Math equips us with problem-solving skills we use daily, often without realizing it. I also learned that mathematical truths are indisputable—no one can argue that 1 + 1 = 2.

During college, I read about Benjamin Franklin, one of our nation’s founding fathers, and discovered something astounding he did. Franklin left approximately $4,400 each to the cities of Boston and Philadelphia in his will, with the condition that the money be loaned and invested to young apprentices who had proven worthy of a loan. After 100 years, the cities were allowed to access part of the funds, with the remaining funds available after 200 years. When the cities finally received their balances, the total had grown to over $6 million. Amazing, isn’t it?

Franklin understood the power of compound interest and put it to work. That small amount he left in his will grew to over $6 million.

Since learning of this, I’ve studied compound interest and applied it to my own life. I realized that understanding compound interest means you’ll earn it; failing to understand it means you’ll pay it. No wonder I’ve avoided debt my entire life. I have no mortgage, no car loan, no credit card debt, no student loans, and no debt whatsoever. Instead, I’ve invested every penny saved to harness the power of compounding.

So, how can you apply compound interest to your life, regardless of your income, to build wealth?

Glad you’re still reading! Here are some simple steps to get started:

1. Study the power of compounding and accept it. Remember, no one can dispute math. The more you understand compound interest, the more you’ll benefit from it, and the less you’ll pay.
2. Be patient. Patience is one of the most important assets in building wealth and achieving financial independence. Wealth doesn’t happen overnight; give compounding time to work its magic.
3. Start investing as early as possible in assets that appreciate over time.
4. Avoid debt. Live within your means, reduce expenses, and remember: the less you need, the more you can invest.
5. Spend far less than you earn and invest the difference in appreciating assets.
6. Choose a responsible partner. Divorce can quickly erode wealth.
7. Secure adequate insurance to protect against life’s uncertainties.
8. Be a law-abiding citizen and steer clear of trouble.
9. Choose friends wisely. Avoid irresponsible people.
10. Prioritize your health.

Let’s consider an example of what compound interest can do for a new college graduate.

Let’s call him John.

• John is 23 years old and just graduated with a $0 net worth.
• He starts his first job, earning $50,000 a year.
• Fascinated by compound interest, he committed early on to harnessing its power.
• On his first day, John calls HR to set aside a large portion of his pay in a 401(k) plan with a low-cost index fund tracking the U.S. total stock market, which has an average annual return of 9%.
• He continues this strategy for 25 years, regardless of his job.

Let’s run the numbers: After 25 years, his investment grows to $1,524,616.13. Yes, that’s over $1.5 million by age 48.

In this example, we’ve assumed:

• John’s salary remains $50,000, with no raises.
• He never sells any shares of his index fund.
• He contributes $18,000 per year ($1,500 a month) pre-tax to a low-cost index fund.

Now, what if John’s salary grows over his 25-year career?

Glad you’re curious! If John’s salary rises, his end balance would likely surpass $1,524,616.13, assuming he continues contributing $18,000 yearly to the index fund.

If you want to test other scenarios, there are great calculators available for experimenting with different numbers.

So, having seen what math and the power of compounding can achieve, do you still disagree when I say I’m 100% sure that nearly every employee can retire early if they follow the right path to build wealth?