3284 Don't wait to start saving
It will cost you a lot of money.
"David is 25 years old.
He begins saving $2,000 a year for ten years (until age 34) then stops. A total of $20,000 has been invested.
Katie, age 22, plans to wait until age 35 to start saving and will invest $2,000 a year until age 65 at a total investment of $62,000.
Who would you expect would have more money at 65?
If you guessed David, you were RIGHT!
David’s initial investment of $20,000 in stocks (at an average interest of 10%) would be worth $545,344 at age 65.
Katie’s initial investment of $62,000 ($2,000 X 31 years) in those same stocks would be worth $352,427 at age 65."
And if David hadn't stopped, but kept going until he was 65? He'd have $815,771. think of it. Just $2,000 a year. That's just a little more than a pack of cigarettes a day not bought and smoked.
Project Cash How time affects the value of moneySource URL: http://maryelizabeth-winstead.blogspot.com/2006/12/3284-dont-wait-to-start-saving-it-will.html
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