Start at 22 vs start at 32
Lesson 6 of 13 in our free Build Wealth the Boring Way guide: a 5-minute money game with the key points below.
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Questions you'll answer
Illustration: £100 a month from age 22 to 65 (43 years), growing at 5% a year compounded monthly. Roughly what's the pot?
Saver A pays £100 a month from 22 to 32, then stops and leaves it growing. Saver B pays £100 a month from 32 to 65. Both at 5%. Who ends up with more at 65?
Quick facts
- Fact: “Starting small and early can beat starting bigger and later.” — Extra years of compounding can outweigh extra pounds paid in.
- Myth: “If you didn't start at 22, there's no point starting now.” — The best time was earlier; the next best is now. Every year of growth still counts.
- Myth: “These figures are a promise of what you'll get.” — They're illustrations at a steady 5%. Real savings rates change and investments can fall.