A Start Up Life

This example has been given many, many times, but it makes such a great point.  Investor A contributes $2,000 from age 26 to age 65 (40 years, $80,000 contributed); Investor B contributes $2,000 per year from age 19 to age 25 (7 years, $14,000 contributed).

Who ends up with more money at age 65? By contributing early, Investor B ends up with $36,937 more than investor A, even though he contributed $66,000 less of his own money. So start saving now!

Here is a hilarious Saturday Night Live skit with Steve Martin (as the host) about consumer debt.

“If you don’t have any money, you should not buy anything.” Classic.