WHAT IS THE VALUE OF STARTING EARLY?

We all want to have savings. Who doesn’t? Admit it, saving money is easier said than done.

We all need savings for a lot of reasons. This could either be for the business we are planning, education, dream house, dream car, dream vacation, emergency fund and a lot more.

Let me show you a scenario that might open your eyes and make you decide for the better.

A 40 y/o saving 1,000 monthly for10 years will accumulate 600K at age 60

A 30 y/o saving 1,000 monthly for10 years will accumulate 1.5M at age 60

A 25 y/o saving 1,000 monthly for10 years will accumulate 2.5M at age 60

 

A 40 y/o saving 2,000 monthly for10 years will accumulate 1.2M at age 60

A 30 y/o saving 2,000 monthly for10 years will accumulate 3.1M at age 60

A 25 y/o saving 2,000 monthly for10 years will accumulate 5.0M at age 60

 

A 40 y/o saving 3,000 monthly for10 years will accumulate 1.8M at age 60

A 30 y/o saving 3,000 monthly for10 years will accumulate 4.6M at age 60

A 25 y/o saving 3,000 monthly for10 years will accumulate 7.5M at age 60

***based on 10% annual growth

What are the simple lessons we learned from the scenario?

1.TIME

  • Big factor in achieving your financial goal
  • Save as early as you can
    • The younger you save the bigger your money will earn

2.MONEY

  • Save as much and as regular as possible
  • The bigger you save, the more you earn

3.INTEREST RATE

  • The higher the interest rate the better
  • You must look for a vehicle that can give you higher interest rate
    • The scenario is based on 10% growth every year
    • Placing your money in a vehicle or institution that will give lower than 10% annual growth, then the value in the scenario could be lower.

Still procrastinating? Think again. NOW is the best time to start.

 

To know more about life insurance, schedule a FREE and NO OBLIGATION consultation NOW. Email me at billones.arnold@gobrighterlife.com

Disclaimer: This website reflects only the views and opinions of the author and is not part of any official communication tools of any life insurance and investment company. The views and opinions on this website do not necessarily reflect those of the company, the management, the advisor/agents and the employees of any insurance or investment company.