Big savings can start with small investments

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More than anything else, Americans struggle to save their money. Saving money can be a daunting task. With so many bills to pay, mouths to feed, things to own, how can you find that extra money to sock into savings? It's very difficult, which is why you have to start small. That is the only way to make saving more manageable, and less intimidating.

In essence, saving for retirement is based on this thought, that small savings can lead to big investments. Nobody is going to be able to save a huge lump sun that's enough to enable them to retire. Hopefully, as you go through the years, you are making lots and lots of smaller investments (ideally done automatically, maybe every month), and over time, these small investments can add up to big savings.

So big savings can definitely start with small investments. In fact, that's basically how most large savings start. This is especially true if you have time to let things grow. That is because of compound interest, which can be a magical thing for you and your money. If you let the money grow for a long time, eventually (if you're doing things right) the interest will be earning interest, the returns will be making returns themselves, etc. That is the beauty of compound interest and that is the main reason why small savings can lead to big investments.

There's a saying, "The best time to plant a tree is 20 years ago. The second best time is today." In other words, if you haven't already, start saving now, even if it's just a small investment. Even if you can only save a few dollars a month... anything is better than nothing, and the sooner you get started, the longer the time it will have to grow, and the more likely it will grow to being big savings. But it has to start somewhere.

Also, starting saving a little bit can get you into a habit of saving. Saving a little bit every month may not seem like much, but it can add up to a lot of money, especially if that money is earning interest or growing in the stock market. Once you save a little bit per month, it becomes easier to save a little more, and then a little more money per month. The first step is always the hardest, but it gets a lot easier after that. Once you get started saving, then you can make it a reality that small savings become big investments.

So absolutely big savings can start with small investments, indeed, that's almost the only way they do start. But the important thing is just to actually get started. That's the first step, and everything gets easier after that.