Question:
When should I start planning for the future?
The sooner you start, the better. The example below shows the
difference in accumulative savings between Ms.Early and Ms.Late, who
started saving at different times.
Ms.Early saves for 10 years and then stops. Ms. Late starts 10 years later and saves for 20 years.
But, Ms.Early still get 87% more than Ms.Late (based upon an investment that gives 10% annual growth, not taking into account annual inflation).
Ms.Early saves for 10 years and then stops. Ms. Late starts 10 years later and saves for 20 years.
But, Ms.Early still get 87% more than Ms.Late (based upon an investment that gives 10% annual growth, not taking into account annual inflation).
| Year | Savings by Ms. Early | Accumulation | Savings by Ms. Late | Accumulation |
| 1 | 1,00,000 | 1,10,000 | - | - |
| 2 | 1,00,000 | 2,31,000 | - | - |
| 3 | 1,00,000 | 3,64,100 | - | - |
| 4 | 1,00,000 | 5,10,510 | - | - |
| 5 | 1,00,000 | 6,71,561 | - | - |
| 6 | 1,00,000 | 8,48,717 | - | - |
| 7 | 1,00,000 | 10,43,589 | - | - |
| 8 | 1,00,000 | 12,57,948 | - | - |
| 9 | 1,00,000 | 14,93,742 | - | - |
| 10 | 1,00,000 | 17,53,117 | - | - |
| 11 | 19,28,428 | 1,00,000 | 1,10,000 | |
| 12 | 21,21,271 | 1,00,000 | 2,31,000 | |
| 13 | 23,33,398 | 1,00,000 | 3,64,100 | |
| 14 | 25,66,738 | 1,00,000 | 5,10,510 | |
| 15 | 28,23,412 | 1,00,000 | 6,71,561 | |
| 16 | 310,5,753 | 1,00,000 | 8,48,717 | |
| 17 | 34,16,329 | 1,00,000 | 10,43,589 | |
| 18 | 37,57,961 | 1,00,000 | 12,57,948 | |
| 19 | 41,33,757 | 1,00,000 | 14,93,742 | |
| 20 | 45,47,133 | 1,00,000 | 17,53,117 | |
| 21 | 50,01,847 | 1,00,000 | 20,38,428 | |
| 22 | 55,02,031 | 1,00,000 | 23,52,271 | |
| 23 | 60,52,234 | 1,00,000 | 26,97,498 | |
| 24 | 66,57,458 | 1,00,000 | 30,77,248 | |
| 25 | 73,23,204 | 1,00,000 | 34,94,973 | |
| 26 | 80,55,524 | 1,00,000 | 39,54,470 | |
| 27 | 88,61,076 | 1,00,000 | 44,59,917 | |
| 28 | 97,47,184 | 1,00,000 | 50,15,909 | |
| 29 | 1,07,21,902 | 1,00,000 | 56,27,500 | |
| 30 | 1,17,94,093 | 1,00,000 | 63,00,250 | |
Src: https://www.hsbc.co.in/1/2/personal/investments/faq
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