Time Value of Money.

Case 1: Suppose you started putting away $100 per month at age 23 and did so for 7 years, until age 30. Then you stopped just letting the money collect interest for the next 34 years.

Case 2: You wait until you are 30 and then start putting away $100 per month for the next 34 years.

In both cases you check the balance of your savings account at age 64, which case has provided for the most total savings?

And the survey says..... Case 1.

Yup save for 7 years early in your career and you will out pace saving the same amount for the following 34 years. This works irregardless of the interest rate you choose. Try it out in exel.

TBL: Start saving as soon as you start your first job.