The Savings Multiplier: Time

Do not save what is left after spending, but spend what is left after saving.
— Warren Buffet

Everyone understands that saving money is the right thing to do. Yet the majority of people out there don’t have sufficient savings. What about you – are you on the fast track to success or are you slogging behind?  Perhaps people don’t truly understand the true power of saving?  I hope this brief article motivates you to stash away some of those hard earned bucks!

Retirement, vacations, a new car, or a beach house – unless you are very lucky, these are all things you will have to save money for. Sometimes it is hard to see the light at the end of the tunnel, but that doesn’t mean the light isn’t there. Even though you don’t know what’s going to happen in the future, it doesn’t mean you can’t save for it now. In fact that’s probably more of a reason to start saving now. The cool thing about saving is that it’s completely up to you and only you can take control of your destiny. No one is forcing you to save, but I can guarantee that in the future you will be ecstatic that you started as early as you did.

For a more detailed outline on HOW TO SAVE check out this link.

The graph below shows the benefits of starting to save earlier rather than later. In both investing scenarios the investors have identical situations. Both have $10,000 to invest over a period of 10 years from the ages of 20-65. They have identical return characteristics of 10% a year and both plan to retire at the age of 65. The only difference between the two scenarios is that in the #1 Scenario the investor started contributing from ages 20-30 while the investor in the #2 Scenario started investing from 30-40.  By starting 10 years earlier the investor in the 1st scenario has a whopping $338,243.91 more than the other investor at retirement. He did nothing different except started earlier. We can all easily see that the earlier your start saving the easier making money becomes. Regardless of your age, the best time to start saving is now.


What are your goals? Most goals require that you have a financial cushion to make happen. Make it easier on yourself and start saving now. Give your money a chance to work for you instead of you working for it!  Although goals are personal and everyone’s reasons for saving are likely different, here are some common ideas as to why you should be starting to save NOW. Check out the list below:


The point of this article is to motivate you to start saving, procrastination is decision that is very expensive. If you have already been doing this, great, pay it forward and go tell someone else to start. If not, then what are you waiting for? This is seriously one of the best things you can do for yourself and your future.  Let your money do all the heavy lifting by building the initial nest egg and watch it grow. It’s always better to start today than tomorrow.