The sooner you start, the better. The longer you stand still and do not take action working towards your financial freedom and thinking about when and how you will retire, the more complicated and longer it will be. So start as soon as possible. It does not require much work or commitment to save, so why not start now?
Compound interest makes a huge difference when it comes down to “when you should start investing,” and as stated before, you should start as soon as possible. Start saving something small at first, so it doesn’t hurt your financial status too much but allows you to have some saved in your account by the end of the year. Something as small as a cup of coffee a day would already be a good start. I am not lying; three dollars a day is already a good start. That sums up to around 100 dollars per month.
If you think 100 dollars per month is nothing, good, then you can easily save that since “it is nothing” for you. But make no mistake, 100 dollars per month can yield excellent results in the long run. All because of the compound interest built on top of it. It is widely known that compound interests are one of the biggest allies if you want to retire. Take your time and study it carefully because your whole financial status will depend on it.
To give you a quick idea and provide you with something to get inspired, following the example above of saving 100 dollars per month, do you know how much that would sum up in 20 years? Doing quick math, 100 * 12 months * 20 years = U$ 24.000. That is the value with no compound interest. At a 1% interest rate, you would have U$ 98.925,54 in your account! At a 2% interest rate, you would have a whooping U$ 574.443,68. And that is only for saving 100 dollars per month, or one cup of coffee daily.
Sometimes the simple and most minor steps are all you need to take advantage of compound interest.
Thank you for reading and hope you have a good rest of the day!
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