Kiran Trivedi Explains Why it pays to Start Saving Early

Even with all the money saving tips in the world, there’s no substitute for saving, and this week on the KiranTrivedi blog, I want to explain why you need to start saving early.

The Plight of the Young Professional

As a 20-something young professional with a good career and a steady stream of disposable income, it often seems as though you’ve got the world at your feet. You’ve got money, you’ve got time and you’ve got an established career path.

That’s why so many of these people don’t save their money. They think, ‘I’ll have plenty of time in the future, my money’s not going anywhere so I’ll start saving in my thirties.’

Retirement- It’s Kind of Expensive!

I understand this point of view, I really do, but the truth is that you’ve got it all wrong. You need to start saving in your twenties. Quite frankly, the earlier the better.

Why, I hear you ask? Well it’s all about preparing for your future. Even though it seems really far away, your retirement will arrive far quicker than you could ever possibly imagine – only 40 years or so – and young people often underestimate how much money they really need to comfortably see out their golden years. Little clue for you – it’s a lot!

Kiran Trivedi Makes His Pitch: Start Saving Earlier!

Alright, fair enough, retirement is kind of expensive. So now I hear you ask, ‘why can’t I just wait until I’m in my mid-30’s when I’m earning more and start saving then?

Basically when you save, you make interest, then you make interest on your interest, known as compound interest, which means the longer you save, the more money you make. Therefore, if you save a little money each month from your early 20’s you stand to have more in the bank by the time you hit the retirement home, than you would if you started saving later.

Furthermore, it’s actually way better for your personal finances across the board. Saving a little bit every month for 40 years leaves you with far more to live off and gives you a better quality of life, than saving a larger amount for 30 years. Can’t say fairer than that, Kiran Trivedi readers!