The best day to start saving is today, even if you can save only a little bit.
The most important advice about saving for retirement is this: Start now. Why? Two reasons:
1.The magic of compound interest. You’ve probably read about this before, but the best way to understand it is to see it in front of you.
According to NewYork Times, If two people put the same amount of money away each year ($5,000), and stop saving upon retirement at the same age (67), one will end up with nearly twice as much money just by starting at 22 instead of 32.Check the chart above(Daily TechVibes-The saving chart).
The best day to start saving is today
2. Saving is a habit. It may make rational, mathematical sense to start saving early, but it isn’t always easy. But the instinct to save grows as you do it. It’ll start to feel good as you see that account balance grow.
How Much Should You Save?
One thing for Sure is that you’ll see articles telling you to save at least 15 percent of your income; that’s a fine benchmark, though the true number will depend on how long you hope to work, what kind of inheritance you may get and a bunch of other unknowable facts. So start with something, even if it’s just $25 per paycheck. Then, try to save a little bit more each year. Do it early and often enough so that saving becomes second nature.