This story of a three college friend with same age. Their names are Mr. Save Now, Mr. Save Later and Mr. Chase.
After graduation the 3 friend start looking for a job and not see each other for a couple of years.
One day the three plan a reunion. They are all happy see each other. All of them have their own family and working in a company. Mr. Save Now. Open a conversation about his plan of starting to save in a mutual fund. I will invest 20,000 a year in mutual fund until I reach 35 years old. Mr. Save Later said I will do it when I am 29 years old. While Mr. Chase said I will wait my salary to increase before I will start my investment in mutual fund. They are 25 years old then.
When they are 29 years old. The 3 friends meet again. Mr. Save later said. I will start investing 20, 000 every year and stop at the age of 60 years old. That’s great Mr. Save Now declared . I will stop investing when we where 35 years old. How about you Chase? Still waiting for my salary to increase I’ll catch up and invest 50,000 at the age of 35 and stop at the age of 45 years old.
When the 3 friends age 61 years old. They decided to get their investment together.
Money invested in mutual fund was at 10% interest compounded yearly. Who do you think have more money to bring home.
Lets see what the table will teach us.
Mr. Save Now
Mr. Save Later
Mr. Chase
And the Winner is…
In the table above. You will notice that even Mr. Save Now stop investing at the age of 35 he still have the highest return. This is how important of taking action of saving now. TIME is your armor in the world of investment.
The early you start. The higher the return will you get. What if Mr. Save Now never stop investing until age 60. How much money is the return. Lets see the table.
Wow. P6, 580,789.72. That is a large amount of money and enough for retirement. Let me ask you now. Are you Mr. Save Now, Mr. Save Later, or Mr. Chase?
The Answer still in you. You are the master of your faith. Your decision today is the reflection of your future.
The better you take action to change your future. You will thank yourself. But if you still have the procrastination mindset you will forever the slave of money.
Always remember Do not delay your future. Start saving for yourself. Pay yourself first. Nobody in-charge of your future. It is you have the the full responsibility to make your life better.