A year ago I left a company that I had been working for since I was 18. The company had a really great benefits program, and one of them was their focus on having their employees enroll in a 401k, or a 403b in this case since they’re considered a non-profit entity.
Anyway, long story short, when I left that job, I had roughly $55,000 in that account. Today, I checked my balance, and despite the fact that I’ve contributed ZERO DOLLARS over the past year (due to new budget restraints), my balance is currently a little over $67,000!
I don’t say that to brag, but I say it to show how amazing compound interest is. I’ve literally done nothing to that account. It’s simply continued to grow on its own and dude…that’s pretty awesome. I hope to be back on track in regards to contributing to that fund in the next few months, but for now, it’s kind of nice to know that I have small nest egg that’s earning interest and will continue doing so until I retire. I’m 27 now, so I think I’ve got plenty of time. Can’t wait to see what that amount turns into!
And it also really drives home the point about starting early! A little bit socked away in your 20s has a huge impact if you let it roll. I’m in my 40s now with 3 kids and I am SO glad I started putting money in a 401k when I was in my early 20s. It wasn’t much, then, but it definitely has formed a nice foundation to build on!
Keep watching that nest egg grow and feel great about it!