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People who have been in the adult game for quite some time always repeat the mantra “save, save, save” when speaking to someone in their 20s or 30s. And rightly so.
However, when they stare at you with a blank look in their eyes, a little lesson in compound interest will go a long way to igniting the missing spark. If you are starting out in life, this article could just be what you need. If you are a little further down the road and know someone who has just started working, share this lesson with them.
Retirement is a long way away when you are in your 20s, but learning about compound interest at a young age will make saving towards retirement not only easier, but far more effective.
Let’s say you don’t start now, but when you reach 45 or even 55, you wake up to the fact that you need to start building your nest egg. You sit down with a financial adviser and work out what you will need in retirement — to illustrate the point, let’s assume you need to save a total of R5m. Let’s ass...
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