Time vs. Amount.
The amount you save every year is important… but what if I told you that with almost all things equal, there is a way that you can save less and accumulate more money. That catch is this… the earlier you start, the earlier compounding interest works in your favour!
All that means is that interest builds upon interest.
The Advantage of Starting Early.
Here is an example of Cathy and Jay. We are going to pretend everything is the same with these 2 individuals other than the time and amount they start saving.
Cathy decided to start earlier at age 30 putting away $6000 a year in her investments. By age 45 she decides with the mortgage and kids, she couldn’t contribute to her own investments anymore. Over the 15 years she had saved $90,000 and at a conservative rate of 6%, by age 60 she would have accumulated $334,693!
Jay decided to wait to invest until age 45 but was able to save $12,000 a year. Double of what Cathy was able to save, and his money will only grow to $279,312… that is the power of compound interest! Cathy’s is worth almost 60% more and jay invested twice as much!
Start earlier and you will have the potential to grow much more!
Whether you are 18, 65, or anywhere on the spectrum… it is important to start today. Every day you don’t take action, you lose that day of compounding interest. Putting something off until tomorrow will turn into next week, and next week will turn into next month, and next month into… well you get the point.
Send me an email on our contact page and I can get you in contact with one of my colleagues from across the country. As always, it is a 0 pressure atmosphere allowing you to take in all the information.