Save Now and Save Later: Cost of Procrastination

Do you want to know how much you are losing every time you delay investing?

Look at the computation below.

This computation is based on a 12% annual rate of return. Interest earned is compounded until age 65.

On the left side of computation, if you start investing at age 25 until age 29. Saving Php 2,000 every month or Php 24,000 every year. A total contribution of Php 120,000 and forget about it until you aged 65, your money will grow to Php 10,098,259 on estimate.

However, if you keep on delaying and you start investing at age 30 to 34 with the same amount and you keep that until age 65. You will have more or less Php 5,730,023. 

Age Yearly Contribution Total Accumulation Age Yearly Contribution Total Accumulation
25 24,000 26,880 25  
26 24,000 56,986 26  
27 24,000 90,704 27  
28 24,000 128,468 28  
29 24,000 170,765 29  
30   191,256 30 24,000 26,880
31   214,207 31 24,000 56,986
32   239,912 32 24,000 90,704
33   268,701 33 24,000 128,468
34   300,945 34 24,000 170,765
35   337,059 35   191,256
36   377,506 36   214,207
37   422,807 37   239,912
38   473,544 38   268,701
39   530,369 39   300,945
40   594,013 40   337,059
65   10,098,259 65   5,730,023

How is that possible that you invested the same amount and end up with different result?Answer: Time. 

You don’t need much money to build a fortune if you have time. This is the effect of the compounding interest. The longer time you have for your money to compound, the better. So it is advisable and we are encouraging young people to start early because they have the advantage.

If you are on the later stage and still wanted to invest, we encourage you to do so. It is still advisable to start as much as possible. Your investment depends on your financial goals.

Time is Gold.

Give your older self a gift by having millions for your retirement. You will never know when will you ever need it, hope you never need it for illness but still we’ll never know. Better to be prepared than go wishy washy now and be poor later.

Hope to see you start in your investing journey.


PS. We are advocating Financial Literacy, teaching people around the world how to achieve their financial goals. Get financial coaching and join a community that encourage saving and investing. Attend our FREE Personal Finance Seminar. Register here.

PS2. Do you want to gain Financial Wealth and Spiritual Abundance at the same time? Join the Truly Rich Club.








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