Time creates money
Monday, December 7th, 2009Employed, self-employed—it doesn’t matter. When it comes to money, time is probably the most important factor in the growth process. The more time you give to your money and the more time it has to grow are the two key ingredients to attracting and creating large sums. The amount you will have accumulated when retirement comes will determine what kind of lifestyle you will then be able to afford.
If you’re forty-five, and start putting $100 a month into an account that averages a 10 percent return, you’ll have $71,880 by age sixty-five.
I If you start ten years earlier, at thirty-five, your $100 a month will have grown to $206,440 by age sixty-five.
l If you can start saving $100 a month at age twenty-five, YOU will have $555,454 by age sixty-five.
Time accounts for the difference. For every year that you wait to take the step of establishing respect for your life, it costs OU about $25,000 a year of future growth. That is a lot of money. By waiting twenty years, from age twenty-five to age torty-five, to start saving just $100 a month, you pass up almost
$480,000.