Here's The Difference Between Someone Who Starts Saving At 25 Vs. Someone Who Starts At 35
If you want to have a comfortable retirement, it is very important to begin saving early. It's a point that can't be reiterated enough.
Here is another example why.
Consider two hypothetical savers - Emily and Dave. Emily puts $200 per month into a retirement account with an estimated 6% rate of return starting at 25. Dave starts saving $200 per month at 35 - just ten years after Emily.
Both continue to add $200 each month until they retire at 65.
By the time they are 65, Emily has contributed $96,000, while Dave has contributed $72,000.
Here's the trajectory of both of to those accounts.
Emily started saving just ten years earlier, and only put in about 33% more money into her account than Dave.
But by the time they are both ready to retire, Emily has almost twice as much as Dave - Emily has $402,492, and Dave has $203,118.
That extra ten years of compounding returns has made Emily's situation far better than Dave's when they are 65.
- A centenarian who starts her day with gentle exercise and loves walks shares 5 longevity tips, including staying single
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- FSSAI in process of collecting pan-India samples of Nestle's Cerelac baby cereals: CEO
- 7 Nutritious and flavourful tiffin ideas to pack for school
- India's e-commerce market set to skyrocket as the country's digital economy surges to USD 1 Trillion by 2030
- Top 5 places to visit near Rishikesh
- Indian economy remains in bright spot: Ministry of Finance
- A surprise visit: Tesla CEO Elon Musk heads to China after deferring India visit
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market