Start to Save When You Are Young
Say you're 22, earn $30,000 a year and put aside 6 percent of pay ($150 a month) until age 65. At an 8 percent average annual rate of return, your $77,400 investment will grow to $619,000 by then. But if you don't begin saving until 32 and set aside the same monthly amount, you'll only accumulate $274,000 by 65 - a huge difference. By increasing the percentage of pay you save and factoring in annual raises, your savings will skyrocket even further.
Return to Current Edition