Saving Money when You are Young Vs Old

Posted by Allan | Uncategorized | Wednesday 1 July 2009 11:02 AM

Are you interested in how money compounds and how if you start saving now you will love yourself in the future? Did you know if you start saving at a young age, after only 10 years you will have more money saved than someone who started saving at 30-years-old to 65-years-old?

So how does someone who puts money away for 10 years have more money in the end than someone who saved for 30 years? Well, say you start off with $1,000 and you get 10% interest each year.

Starting young:

  • Year 1: 1,100
  • Year 2   3,310
  • Year10 (stopped saving)
  • Year 20
  • Year 40
  • year 45 (age 65)

Starting older:

  • Year 1: 1,100
  • Year 2   3,310
  • …….
  • Year 35 (age 65)

Now you can see how much it really helps to save early.

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