When should one start saving? Check out the follwoing examples to find out:
Scenario 1
Ali, 20 years old, saves $100 per month @ 5% p.a.
At 40 years old, Ali would have contributed $24,000, and earned an interest of $17,275
Total Savings = $24,000 + $17,275 = $41,275
Scenario 2
Billy, 30 years old, saves $200 per month @ 5% p.a.
At 40 years old, Billy would have also contributed $24,000, but only earned an interest of $7,186
Total Savings = $24,000 + $7,186 = $31,186
By delaying your saving plans, the same amount contributed would result in significantly lower returns!
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