Posts Tagged ‘college’

Don’t Procrastinate!

February 25, 2009

In personal finance, procrastinating is almost always bad. Starting to save late will always cost you, but sometimes there’s even a fee for procrastinating. Take saving for college – at The Frugal Duchess, the author outlines the fees that she now has to pay. A parent who registered when the child was a newborn would pay about $82 a month. A parent who started when the child was 16? $600 a month. More than just a slight difference.

Then, check out this article at Getrichslowly. “Early Bird Bob” started when he was 20 and ended when he was 40, investing $5000 a year (total $100,000). When he retired at 67, with a 10.95% return, he had $5,938,625. “Late bloomer Bill” invested $20,000 a year for 28 years (total $560,000), and finished at 67 with $3,168,398.  Bob contributed less, but ended up with more. I highly recommend that article (this was actually the article that started my personal finance interest) – it’s interesting (to me, at least), and very informative. And it really gets the point across.

My point? Don’t procrastinate! You’ll only hurt yourself.