I was running some numbers today and just realised my wealth has had an average compound return of around 125% since 2008 from when I was a graduate. This includes rent, estimate capital growth, salary, shares etc, you name it. Which got me thinking about a few things about accumulating wealth. 1. Starting early is important 2. You really need a return of 50%+ growth in your 20s and early 30s years to get ahead 3. Starting capital is important but not THAT important. If you had $100k, 125% compound returns over 8 years is around $6.5m If you had $50k, it's $3.5m. Going from $3.5m to $6.5m is not that hard, so whether you start with $50k or $100k is not that big a deal. I say this because a lot of people don't for example take the leap of faith because they feel they don't have enough money. It also got me thinking. If you get to a point in life where you have a lot of equity and whatever you're doing (your job, business etc) is only having a minimal increase on your wealth, you may want to reconsider what to do in life if you still want to grow your wealth. Eg if you have $2m equity, do you really want to be working in a job making $50k pa? That's only 2.5% increase in your wealth. To get serious about wealth accumulating, you really should be growing your $2m by maybe $200k (10%) if not $400k (20%) per annum. It's the art of compound returns.