Healthy Hundred

Imagine two friends, Petra and Carlos. Petra started investing at 25, putting aside a small amount each month. Carlos, meanwhile, didn’t start saving until he was 35. By the time they both turned 60, Petra had managed to accumulate twice as much as Carlos despite both investing the same amount. The difference? Petra’s money had an extra 10 years to grow, thanks to the power of compounding. (assuming ~5% pa)

Compounding, where returns build on returns, is the secret to building wealth over time. The earlier you start, the longer your money has to multiply, and even small contributions can turn into significant sums. Delaying, even by a few years, can mean missing out on major financial growth.

So, start saving as it’s never too late. Whether you’re 25, 35, or 45, the important thing is to get your money working for you as early as possible. Set up automatic contributions to a savings or investment account, even if it’s a modest amount. Compounding is there to help you.