Give your money time to grow

Farm Forum

Getting motivated to save for retirement can be a challenge, especially when you’re young. It’s much easier to prioritize immediate needs or wants than it is to stash money away for the distant future. Yet it is the early saving we do that has the most impact. Why? Because that money has more time to grow.


· Saving just $1,000/year (at 8%) will yield well over $250,000 after 40 years. You invest $40,000 over time and gain more than $210,000 in investment earnings.

· By contrast, if someone wanted to save $250,000, but waited till the last 15 years to start saving, they would need to save more than $9,200/year (earning an 8% return). In this scenario you invest over $138,000 and gain less than $115,000 in investment earnings.

Which is more realistic? Wouldn’t you rather scrape together $1,000 a year now (that’s $83/month) instead of waiting till late in your career and then panicking about how to catch up?

There are lots of examples showing the benefit of starting early in saving for retirement. One good resource is Another source of information is under Healthy Families, Family & Personal finance.

If you haven’t been saving for retirement, now is the time to start! If you have been saving, but want to save more, now is also a great time to boost your monthly savings.

Here’s one idea for “finding” money to save: Challenge yourself to match every dollar you spend on “fun” this summer (going to the fair, buying ice cream, watching movies, etc.) with a dollar saved for retirement. After all, if you can afford to spend money on something fun, then you can probably also afford to put money away for retirement necessities.

What are your ideas for finding money to save for retirement? Remember, even small amounts can grow and provide big yields, especially if you start now!

Reach Karen Slunecka at 605-626-2870 or