Part 2A: When should i start saving?

This is a mock-up scenario to show the effects of saving earlier.

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!