The cost of waiting can make a huge difference in your future. The earlier you save, the more you will have at the end. For this example, I will use these three twin brothers, Adam, Bill, and Chris, saving at an 8% interest.

• Adam - Married shortly after college and was not able to start saving money until he was 33 years old. He then saved $2,000 a year for the next 28 years.
• Bill - Started saving after college, but once he got married at 32, the cost of living increased and was not able to add any more into his investment after age of 33.
• Chris - Saved up any left over from his college. He tried to save more money after college, but because of his extensive outgoing personality, he could no longer save any more after the age of 28.

Guess who ends up with more money?

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		Adam		Bill		Chris
AGE	RATE	Saved Yearly	Total	Saved Yearly	Total	Saved Yearly	Total
25	8%	$0	$0	$2,000	$2,160	$10,000	$10,800
26	8%	$0	$0	$2,000	$4,493	$2,000	$13,824
27	8%	$0	$0	$2,000	$7,012	$1,000	$16,010
28	8%	$0	$0	$2,000	$9,733	$500	$17,831
29	8%	$0	$0	$2,000	$12,672	$0	$19,257
30	8%	$0	$0	$2,000	$15,846	$0	$20,798
31	8%	$0	$0	$2,000	$19,273	$0	$22,462
32	8%	$0	$0	$2,000	$22,975	$0	$24,258
33	8%	$2,000	$2,160	$1,000	$25,893	$0	$26,199
34	8%	$2,000	$4,493	$0	$27,965	$0	$28,295
35	8%	$2,000	$7,012	$0	$30,202	$0	$30,559
36	8%	$2,000	$9,733	$0	$32,618	$0	$33,003
37	8%	$2,000	$12,672	$0	$35,227	$0	$35,644
38	8%	$2,000	$15,846	$0	$38,045	$0	$38,495
39	8%	$2,000	$19,273	$0	$41,089	$0	$41,575
40	8%	$2,000	$22,975	$0	$44,376	$0	$44,901
41	8%	$2,000	$26,973	$0	$47,926	$0	$48,493
42	8%	$2,000	$31,291	$0	$51,760	$0	$52,372
43	8%	$2,000	$35,954	$0	$55,901	$0	$56,562
44	8%	$2,000	$40,991	$0	$60,373	$0	$61,087
45	8%	$2,000	$46,430	$0	$65,203	$0	$65,974
46	8%	$2,000	$52,304	$0	$70,420	$0	$71,252
47	8%	$2,000	$58,649	$0	$76,053	$0	$76,952
48	8%	$2,000	$65,500	$0	$82,137	$0	$83,108
49	8%	$2,000	$72,900	$0	$88,708	$0	$89,757
50	8%	$2,000	$80,893	$0	$95,805	$0	$96,937
51	8%	$2,000	$89,524	$0	$103,469	$0	$104,692
52	8%	$2,000	$98,846	$0	$111,747	$0	$113,068
53	8%	$2,000	$108,914	$0	$120,687	$0	$122,113
54	8%	$2,000	$119,787	$0	$130,342	$0	$131,882
55	8%	$2,000	$131,530	$0	$140,769	$0	$142,433
56	8%	$2,000	$144,212	$0	$152,031	$0	$153,827
57	8%	$2,000	$157,909	$0	$164,193	$0	$166,134
58	8%	$2,000	$172,702	$0	$177,328	$0	$179,424
59	8%	$2,000	$188,678	$0	$191,515	$0	$193,778
60	8%	$2,000	$205,932	$0	$206,836	$0	$209,281
		Total Saved	Total $ Gained	Total Saved	Total $ Gained	Total Saved	Total $ Gained
		$56,000	$205,932	$17,000	$206,836	$13,500	$209,281

As you can see, Adam had saved $56,000 total thoughout his 28 years, but had not yet reach as much as Chris had obtain at age 60. The reason is because Chris started earlier, hence started compounding his money earlier and faster. See at age 40, Chris and Bill already had twice as much money as Adam.

Mouse over graph to compare

It is never too late to start planning for your future. Contact me for solutions.