Principles of Savings

Start saving early

Mary and Arturo both save $1,000 per year ($83.33 per month or $19.23 per week). The money each saves earns 10% interest per year. Mary starts at age 22 and stops at age 30. Arturo starts at age 30 and stops at age 65*.

Age	Mary Invests	Growth	Arturo Invests	Growth
22	1,000	1,100	0	0
23	1,000	2,310	0	0
24	1,000	3,641	0	0
25	1,000	5,105	0	0
26	1,000	6,716	0	0
27	1,000	8,487	0	0
28	1,000	10,436	0	0
29	1,000	12,579	0	0
30	0	13,837	1,000	1,100
31	0	15,221	1,000	2,310
32	0	16,743	1,000	3,641
33	0	18,418	1,000	5,105
34	0	20,259	1,000	6,716
35	0	22,285	1,000	8,487
36	0	24,514	1,000	10,436
37	0	26,965	1,000	12,579
38	0	29,662	1,000	14,937
39	0	32,628	1,000	17,531
40	0	35,891	1,000	20,384
41	0	39,480	1,000	23,523
42	0	43,428	1,000	26,975
43	0	47,771	1,000	30,772
44	0	52,548	1,000	34,950
45	0	57,802	1,000	39,545
46	0	63,583	1,000	44,599
47	0	69,941	1,000	50,159
48	0	76,935	1,000	56,275
49	0	84,628	1,000	63,002
50	0	93,091	1,000	70,403
51	0	102,400	1,000	78,543
52	0	112,640	1,000	87,497
53	0	123,904	1,000	97,347
54	0	136,295	1,000	108,182
55	0	149,924	1,000	120,100
56	0	164,917	1,000	133,210
57	0	181,409	1,000	147,631
58	0	199,549	1,000	163,494
59	0	219,504	1,000	180,943
60	0	241,455	1,000	200,138
61	0	265,600	1,000	221,252
62	0	292,160	1,000	244,477
63	0	321,376	1,000	270,024
64	0	353,514	1,000	298,127
65	0	388,865	1,000	329,039
	Value at Retirement	$388,865	Value At Retirement	$329,039
	Less Total Contributions	$(8,000)	Less Total Contributions	$(35,000)
	Net Earnings	$380,865	Net Earnings	$294,039

• Mary invested $8,000 total.
• Arturo invested $35,000 Total

*...and Arturo never caught up.