Saving money consistently is so important! The earlier you start, the better. Let compound interest work in your favor! While you can’t change the past, you CAN start right now! What is every high school student couldn't graduate until they could understand and explain this chart? I sure I would have!
Example - Ben and Arthur
Both save $2,000 per year at 12%. Ben starts at age 19 and stops at age 26. Arthur starts at age 27 and stops at age 65.
Age | Ben Invests | Arthur Invests | ||
19 | $2,000 | $2,240 | $0 | $0 |
20 | $2,000 | $4,749 | $0 | $0 |
21 | $2,000 | $7,558 | $0 | $0 |
22 | $2,000 | $10,706 | $0 | $0 |
23 | $2,000 | $14,230 | $0 | $0 |
24 | $2,000 | $18,178 | $0 | $0 |
25 | $2,000 | $22,599 | $0 | $0 |
26 | $2,000 | $27,551 | $0 | $0 |
27 | $0 | $30,857 | $2,000 | $2,240 |
28 | $0 | $34,560 | $2,000 | $4,749 |
29 | $0 | $38,708 | $2,000 | $7,558 |
30 | $0 | $43,352 | $2,000 | $10,706 |
31 | $0 | $48,554 | $2,000 | $14,230 |
32 | $0 | $54,381 | $2,000 | $18,178 |
33 | $0 | $60,907 | $2,000 | $22,599 |
34 | $0 | $68,216 | $2,000 | $27,551 |
35 | $0 | $76,802 | $2,000 | $33,097 |
36 | $0 | $85,570 | $2,000 | $39,309 |
37 | $0 | $95,383 | $2,000 | $46,266 |
38 | $0 | $107,339 | $2,000 | $54,058 |
39 | $0 | $120,220 | $2,000 | $62,785 |
40 | $0 | $134,646 | $2,000 | $72,559 |
41 | $0 | $150,804 | $2,000 | $83,506 |
42 | $0 | $168,900 | $2,000 | $95,767 |
43 | $0 | $189,168 | $2,000 | $109,499 |
44 | $0 | $211,869 | $2,000 | $124,879 |
45 | $0 | $237,293 | $2,000 | $142,104 |
46 | $0 | $265,768 | $2,000 | $161,396 |
47 | $0 | $297,660 | $2,000 | $183,004 |
48 | $0 | $333,379 | $2,000 | $207,204 |
49 | $0 | $373,385 | $2,000 | $234,308 |
50 | $0 | $418,191 | $2,000 | $264,665 |
51 | $0 | $468,374 | $2,000 | $298,665 |
52 | $0 | $524,579 | $2,000 | $336,745 |
53 | $0 | $587,528 | $2,000 | $379,394 |
54 | $0 | $658,032 | $2,000 | $427,161 |
55 | $0 | $736,995 | $2,000 | $480,660 |
56 | $0 | $825,435 | $2,000 | $540,579 |
57 | $0 | $924,487 | $2,000 | $607,688 |
58 | $0 | $1,035,425 | $2,000 | $682,851 |
59 | $0 | $1,159,676 | $2,000 | $767,033 |
60 | $0 | $1,298,837 | $2,000 | $861,317 |
61 | $0 | $1,454,698 | $2,000 | $966,915 |
62 | $0 | $1,629,261 | $2,000 | $1,085,185 |
63 | $0 | $1,824,773 | $2,000 | $1,217,647 |
64 | $0 | $2,043,746 | $2,000 | $1,366,005 |
65 | $0 | $2,288,996 | $2,000 | $1,532,166 |
...And he never caught up! |
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