I have this little calculator built into my cellular phone. Sometimes, when I’m bored, I’ll pull out the cell and goof around with the calculator. So, the other night I had the following thought, “How much money have I made during my lifetime.” Here are the details. I’m almost 32, and I’ve worked since I was about 14. The breakdown:
| Year | Salary |
| 1990 | 3000 |
| 1991 | 3500 |
| 1992 | 7000 |
| 1993 | 9000 |
| 1994 | 9000 |
| 1995 | 10000 |
| 1996 | 20000 |
| 1997 | 20000 |
| 1998 | 22000 |
| 1999 | 25000 |
| 2000 | 30000 |
| 2001 | 32000 |
| 2002 | 34000 |
| 2003 | 35000 |
| 2004 | 38000 |
| 2005 | 40000 |
| 2006 | 42000 |
These are rather rough estimates (but pretty close). I got my first “real” job in 1996. So, how much money have I made, in salary, over the past 17 years? $379,500. Now, for some folks, that’s not much money, and for others, it’s a lot of money. Whatever you think about the amount (which I consider to be pretty sizable for a dude with no college education who works in a a small, rural town in Georgia) you have to admit that it is a pretty decent chunk of change. This got me to thinking a little bit further. What IF, instead of spending all of my money (as I did every year until the past two) I had actually SAVED 10 percent of my salary, at say 8 percent interest, per year. Let’s run the numbers:
| Ten Percent | End Of Year |
| 300.00 | 324.00 |
| 350.00 | 727.92 |
| 700.00 | 1542.15 |
| 900.00 | 2637.53 |
| 900.00 | 3820.53 |
| 1000.00 | 5206.17 |
| 2000.00 | 7782.66 |
| 2000.00 | 10565.28 |
| 2200.00 | 13786.50 |
| 2500.00 | 17589.42 |
| 3000.00 | 22236.57 |
| 3200.00 | 27471.50 |
| 3400.00 | 33341.22 |
| 3500.00 | 39788.52 |
| 3800.00 | 47075.60 |
| 4000.00 | 55161.64 |
| 4200.00 | 64110.58 |
At the end of the 17 year period, I would have had 64,410.58 in my retirement account. Not bad. Instead, I have about 20K. Now, for the sobering reality. Ready? If I NEVER put another dollar into retirement, but left that 64K to grow at 8 percent, how much money would I have in, say, 30 years when I’m ready to retire?
Over $640,000.
Yep, that’s right. If I had saved just 10 percent of my income for the past 17 years, in 30 years I would have over $640,000 dollars, without ever saving another dime. But, what if I waited just 5 more years to retire, when I will be 67?
Over $940,000.
Wow! Now, as you can see, I have “low-balled” my estimates. I assumed a VERY modest amount of savings, and a very, very modest rate of return, and I STILL would have almost 1 MILLION dollars in my retirement account. Do you SEE how important time is? If you are a young person and you are reading this, please realize the EXTREME importance of starting NOW. I’m already playing catch-up, and I’m debt free with 20K in the bank. You have to get started. NOW!