Your are 25 years old, you save $100 a month until you are 65. Assume an average return of 6% You save a total of $48,000 over 40 years and it is worth $199,150. Make that $300 a month and you save a total of $144,000 that will then be worth $597,450.
Wait until you are 45 to start saving. $100 a month for 20 years: you save $24,000 that is worth a whopping $46,204.. $300 a month would be worth $138,612,
At 45, if you wanted to get that same $600,000 amount by the age of 65, you would need to save $1,300 a month for 20 years.
$300 a month at 25 or $1,300 a month at 45…..which sounds more doable?
