Start saving now! You’ve probably heard this before but the fact is it’s very true. It may be boring today but it’s what happens down the road that changes the game for people. Here is a picture that displays it perfectly.
This picture demonstrates the basic idea of compound interest. You may not feel like the few dollars you put away today is doing much but that changes 10 – 20 years down the road. Give it time and you will come out ahead.
“It’s kind of like planting an oak tree. As Warren Buffett said in an interview with News Inc, “Someone’s sitting in the shade today because someone planted a tree long ago.” The same thing applies to compound interest. We have to live through the boring parts in order to reap the benefits down the road.
The Under30Finance Team