Barrie Mortgage Blog
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Why Now is a Good Time to Start Saving in Barrie, Ontario
May 22, 2018 | Posted by: Della Dwyer - Your Trusted Barrie and Surrounding areas Mortgage Broker
Conceptually, most people understand on some level, the great benefit in saving.Whether the goal is to buy a home, maintain a high quality of living in retirement years in Barrie, Ontario, or simply for peace of mind, now is the best time to start saving. Even if your youthful years are in the rear-view mirror, 'now' is far better than never.
The Numbers and Compound Interest
A simple comparison showing disciplined but not extraordinary saving is illustrative of how easy it can be. Consider saving $500 a month with an annualized return of 2.00 percent, compounded annually. If you saved that amount for the specified number of years below, your investment would be:
10 years -- $66,970.43
20 years -- $148,144.08
30 years -- $247,273.30
40 years -- $368,329.84
Clearly, one who begins at 25 would benefit the most by age 65. But all who save, even at a modest rate are winners.
It is Not too late
Even if you have never saved, or have saved and lost, it is not too late. No matter what age you are, you have to save that first dollar. One way to begin is to set up an automatic transfer from your checking account to your savings account. By doing so, you will not have any excuses or be able to claim that you forgot or didn't get around to saving that month. Paying yourself first is a good practice that will pay dividends in the future.
