Unless you are born with a silver spoon in your mouth, accruing wealth does not come easily, which is why Jim Cramer is so passionate about helping investors find a viable financial strategy.
For instance, if $100 is invested in the S&P 500 and it gains 10 percent in a year, that will generate $110, after another year it's $121 and after a third year it's $133.
The gains will continue to grow, because each year, money is made from the previous year's profits. With that 10 percent average annual return, an investor can double his money in about seven years, Cramer said.
"The magic of compounding works best the younger you are because that means you have more time for your money to grow," Cramer said.
For instance, if a 22-year-old is just entering the workforce, she has more than 40 years before she retires. She can invest $10,000 in an S&P index fund right now with the anticipation that the next 40 years will not be too different from the last 40 years.