During the first decade of building your Engine, you won’t see the dramatic effects of compounding. If you think of your money as a mini version of you, the first years are still school time. The most important focus during that time is laying solid foundations. Creating the habit of paying yourself first. Where every time money comes in, you spend less than you could, because some immediately gets invested. Where every time money comes in, you get some of it a job. You internalise the discipline of having money “that is there, but isn’t”. Learning to live dramatically within your means. Finding a way to have a buffer for life’s emergencies, so you aren’t continually starting from scratch. This isn’t hoarded money. It doesn’t sit sunning in a pool. It works, then takes the money it earns and (if you leave it alone) gets it more work. Shifting from a hand-to-mouth life dependent on your earning ability, to a custodial life where the task of financing problem solving is shared with your past self. Then gradually, the magic of compounding can power the realisation that life isn’t a problem to be solved.
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