Thoughtful Money with Adam Taggart · Sunday, August 30, 2026
Adam Taggart explains the concept of compounding, noting that human brains tend to think linearly rather than exponentially, making compounding a powerful but often misunderstood force. He illustrates that starting with $5,000 at age 18 and adding $5,000 annually, with an 8% return, could lead to millions by age 50.
“Humans brains we think linearly. We we don't think exponentially. And compounding is definitely an exponential function.”
“So, um, a really key element is the earlier in life you can start saving, the much more you can benefit from that over time.”
“If you're 18 years old, if you put $5,000 away that year, and then you just put $5,000 away year after year after year, you're going to be a millionaire by the time you hit 50.”