The Power of Time in Investing! ⏳💰
When it comes to saving and investing, time is your biggest asset. Let’s break down the impact of starting early and saving consistently with two scenarios:
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Person A starts saving GHS 3,000 per year for 7 years at an 8% return rate in a Tier 3 pension account starting at age 25.
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Person B waits and starts saving the same GHS 3,000 per year, but waits 17 years to start at age 42.
Scenario 1: Start Early – Save GHS 3,000 per Year for 7 Years at 8% Return Rate
| Age |
Contributions (GHS) |
Accumulated Balance (GHS) |
| 25 |
3,000 |
3,000 |
| 26 |
6,000 |
6,240 |
| 27 |
9,000 |
9,619 |
| 28 |
12,000 |
13,151 |
| 45 |
63,000 |
116,952 |
| 46 |
66,000 |
126,897 |
| 47 |
69,000 |
137,373 |
| 48 |
72,000 |
148,330 |
Total Contributions (GHS): 72,000
Total Accumulated Balance (GHS): 148,330
Scenario 2: Wait 17 Years – Start at 42, Save GHS 3,000 per Year for 7 Years at 8% Return Rate
| Age |
Contributions (GHS) |
Accumulated Balance (GHS) |
| 42 |
3,000 |
3,000 |
| 43 |
6,000 |
6,240 |
| 44 |
9,000 |
9,619 |
| 45 |
12,000 |
13,151 |
| 46 |
15,000 |
16,853 |
| 47 |
18,000 |
20,742 |
| 48 |
21,000 |
24,835 |
Total Contributions (GHS): 21,000
Total Accumulated Balance (GHS): 24,835
Key Insights
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Starting early gives you time for compound growth. In this example, Person A accumulated GHS 148,330 by age 48, while Person B, who waited 17 years to start, only accumulated GHS 24,835.
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Start Now: Even if it feels like it’s “too early,” every year of delay costs you potential growth
The Bottom Line: Time is the ultimate difference-maker. Start saving today, and let time and compound interest work in your favor!.