Being young the last thing on my mind is retirement, even though it would be awesome to retire at 22 I know it’s not about to happen. But I had my eyes opened to the importance of starting to save while your young.

Here is the example I was given:

If person 1 was to contribute $1,000 per year for 15 years from age 20-35 and then stopped contributing. with a 10% return on their investment person 1 would have approximately $145,993 and has only invested $15,000 of his own money into that total.

If person 2 was to wait until he was 40 and contribute $3,000 per year for 10 years until he was 50 and with a 10% return his total would come out to about $52,594 with a total investment of $30,000 of his own money.

So it’s pretty easy to see how saving a little early will pay off big time later on. $1,000 a year is nothing. That is not even close to $100 per pay check. Along with contributing a little of your own money each pay check a lot of companies these days will match a percentage or up to a certain maximum helping to quickly grow your retirement fund and getting you off to a good start!

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