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Heres how just $10 in your 20s canmake you a millionaire in retirement.
When you save money, you earn interest on that money.
If you put your savings in a bank account, youll get a fixed rate of interest.
Suppose you invest $1,000, and your investment earns 10% per year.
After year one, youll have $1,100 your initial $1,000 investment plus the $100 you earned.
After year two, youll have $1,210, and after year three, youll have $1,331.
And the earlier you start, the more money youll invest before you hand in that last resignation.
A worker who starts saving at age 20 can save for 45 years and retire at 65.
Someone who doesnt start saving until age 40 only has 25 years before they retire.
These calculations assume you will invest the same amount every year.
Time really is on your side when it comes to saving for retirement.
Starting in your 20s can mean amuch bigger cushionwhen you stop working at 65.
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