One of the challenges of Filipinos is our habit of procrastination especially when it comes to saving and investing. Our priorities rarely includes saving. Thus for how many years, a lot of Filipinos still haven’t started saving and investing yet. However, let me show you today that the longer we delay saving, the more we are throwing away potential millions later on. Time is truly money.
|Time is money|
|Source: IMG Advance Training Materials|
Looking at the figures above, if we started saving at age 20, we only need to save 860 per month! That’s very cheap and doable. By the time we started saving at age 35, to get 5 million at age 65, the amount we need to save increases to 3,600 per month. But, if we continue to delay and decide to save later on at age 50, a whopping 14,860 per month is what we needed. Therefore, the longer we delay the higher is the cost for us to retire.
|Mr. Save Early versus Mr. Save Later – the importance of saving early|
Looking at the figures above, Mr. Save Early and Mr. Save Later both invested 20,000 per year for 6 years at 12% interest per year. However, Mr. Save Early started at age 22 while Mr. Save Later started at age 28. However, by the time they decided to retire at age 62, Mr. Save Early gains: 9.6M while Mr. Save Later gains: 4.9M!! The difference is almost double! They both saved the same amount but the only difference is that the other started earlier. How about you? When do you plan to save?
|Mr. Catch-up never caught up saving – we need to save and invest early|
Looking at the figures above, Mr. Catch-up never ever caught up with Mr. Save Early and Mr. Save Later.
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