If you think about it, there is an excellent reason to start saving early and that reason is compound interest! The earlier you start saving the better because compound interest is that marvelous innovation that piles interest upon interest, upon… When you save money, or invest it, you will be earning interest. The amount you have put aside will be earning interest each and every year and as interested is added to it the interest will be compounding and earning you a tidy sum without you having to lift a finger.
The way compound interest words is that each time interest is added to the original sum the original sum grows ever larger and so the interest you earn will be calculated on the growing capital which includes all interests gathered. For this reason it is a good idea to start saving at as young an age as you possibly can. The amount you save does not have to be a large sum but it starts good habits and saving is a really good habit. It will take time for the interest to grow, especially if the sum being saved is not large but it will grow!
If you manage to invest 100 pounds every month from the age of 25 at an interest rate of 7% a year, your compounded interest brings your investment to 256,331 pounds by the time you reach the age of 65. In the same way, if you started at 45 year of age and invested 200 pounds a month instead at the same interest rate, by the time you reach 65 years of age you would be sitting with substantially less; 105,276 pounds to be exact. Time is what compound interest is all about. It takes time for that interest to build itself up and add itself onto your investment. You pay in small amounts to keep your nest egg growing and you let the interest help the figures on your statements increase.
We all want to be comfortable in our autumn year and, unfortunately, they come more quickly than one would believe. We don’t want to be scratching for money, having to take out loans, getting into debt. If you are one of those people who have lost your job or have some other unexpected problem or expense, remember payday loans are available for short term loans. Payday loans are a good bridging loan for an emergency and there are transparent, reputable and registered companies offering payday loans. Be aware though, make sure you borrow from a reputable payday loans company so that you know exactly where you stand.