Saving just a little bit extra each year can have a profound impact over the long term. Investor’s Business Daily ran some pretty interesting numbers showing the impact on one’s retirement if an extra $20 is saved every week. Here is some of the findings based on certain age ranges:
Recent College Grad: invest $20/wk earning 6% and by retirement, that pot of money will be about $330,000.
Someone in their mid-40s: invest $20/wk earning 6% and by retirement, that pot of money will be about $40,000.
Someone in their mid-50s: invest $20/wk earning 6% and by retirement, that pot of money will be about $14,000.
The results are pretty clear – consistently investing over many decades can have exponential benefits on your financial situation. Even small amounts can add up to have a big impact when time is on your side.