Proverbial Living

When I first read this article, I thought the financial math was too good to be true. So I made my own spreadsheet to check it. The answer is amazing and should be a wake up call to all millennials and recent college grads as they begin their careers in the workplace. The takeaway? Start saving now while you have limited obligations like families and homes, and you might not need to save once those obligations start happening. Look at the chart below!

By starting early in your career, and saving the same amount each year for just 8 years, you will accrue more in future wealth than you would if you waited until year 9 and then saved the same amount for the next 39 years. Saving for the future is hard, but what seems easier, saving for 8 years, or saving for 39 years? The magic of compound interest does work. Now just imagine if you started early and continued for the entire 47 years? Spoiler alert: you’d have $1,918,344!