The Power of Starting Early in Saving for Retirement

Do you think you don't have enough money to begin saving for retirement?  Could you afford $20 a week by packing your lunch a few more times or skipping a few trips to the coffee shop?

Maybe you think it's too far off or you don't think that $20 a week would really make much difference anyway. I have some good news for you! Small amounts saved, grow into big amounts over time, due to the power of compounding.  And starting early makes a HUGE difference because of the power of "compounding"!

Here is an example. Let's use our previous suggestion of saving $20 a week.  Although $20 a week doesn't seem like much, it adds up to over $1,000 of savings in a year, before any interest or earnings on your initial investment!

After 20 years, at a 5 percent return, you would have $36,100!  Increase the return to 10 percent and your account would grow to a whopping $65,500 at the end of 20 years.  Increase the time frame to 30  years and you would have $72,600 (at 5%) or $188,200 (at 10%)

Hopefully these numbers will motivate you to start saving NOW, even if it's a small amount.  Remember, compounding over time is powerful and small savings DO matter!