More For Your Money - University of Illinois Extension

The Impact of Time on Money

For long-term goals, the compounding of money can make a big difference. The more years you have to reach a financial goal, the more you can plan for your money to compound.

The chart below shows a 22-year old who saves $2000 each year for nine years.  This person will have more money at age 65 than another person who starts saving $2000 per year at age 32 and saves for 35 years!  The sooner you start, the more time you have for interest to accumulate.

Age Contributions Made Early Contributions Made Later
22-30 (9 years) $2,000 annually $0
31-65 (35 years) $0 $2,000 anually
Total Saved $18,000 $70,000
Amount Available at 65 $579,471* $470,249*
*Assumes money earns 9% return