Oftentimes, the best time to begin saving money and building up funds for later is usually as soon as possible, and there are three particularly good reasons to save early on in life. The first reason is because compound interest, over time, can and often is a great way to multiply one’s savings provided that one starts early. The second reason is because of options that may be currently available that, when used early, can help one increase one’s savings, but only if one seizes these options early. The third reason is because investments, particularly stocks, tend to give greater returns over longer periods of time.
- Savers can end up accumulating 60% more just by starting to save ten years earlier than planned.
- If you have a retirement plan that is sponsored by your employer, not contributing will end up costing you in the future.
- It is important to remember that plans such as 401(k)s and IRAs have maximum contribution amounts.
“perhaps the most important variable is the one that’s priceless: time.”