It had an interesting comparison between age group that how much we need to save every month to save a million by 65. If there is no savings at all,
If you are 25, $286 per month
If you are 35, $671 per month
If you are 45, $1,698 per month
If you are 55, $5,466 per month
(This supposes 8% annual return)
The difference is so huge! If we start at 25, we only need to save $286/mo till 65. If we wait 10 years, the amount becomes more than double!
Conclusion: Time is Money when it comes to saving. Start as early as possible! I wish someone told me this earlier. I could not start at 25 because I was still in college, but I could have started when I got a job. Since I did not know anything, I did nothing for first 3 years. But since then, I'm doing alright. I may not be a millionaire by 65, but hopefully I can retire someday...
2 コメント:
Wow. Thought provoking... I am still in the investing mode, where I am thinking about saving and using them all for Grad school, and that's what I have to do for now, but still, I better start saving as soon as possible...if I wait till 45, I will have to use half of my pay check (of course, depending on how much I earn then) for my retired years. Impossible. Thanks for sharing, Lothlorien. I'll keep this in mind and start saving as soon as possible.
Tamakichi, investing in your education will not be the debt because it will give you a better job in a future!
I always hear "do what you can do". Meaning if you cannot save $500 every month, start with $100, or even $50. Like I mentioned, "time is money". Even a small amount will become a big return if it's invested in many years. By the way, "saving" will not earn much interest. When we are young, we have to invest somewhat aggressively! I do not do any stocks, but at least, I am doing mutual funds...
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