Financial Decisions In Your 20s

MSN Money has a really nice personal finance section for those in their 20s. I agree that the 20s are some of the most important years of life because the decisions made during that time really impact the future. For instance, if a person chooses NOT to save for retirement during their 20s, they lose out on some critical compounding years, which makes it all the more difficult to save for retirement later in life. Take a look at the numbers for yourself with this calculator I created:

Retirement Savings Comparison Calculator

As you can see from this calculator, waiting just 10 years to start saving for retirement means that you have to save more than double your original amount. That’s something to think about.

6 thoughts on “Financial Decisions In Your 20s”

  1. I think there is a problem with “Expected amount at retirement age AFTER inflation” values… they match for both scenarios even when the value above them doesn’t match.

    Other than that, I really like the calculator!

  2. Wow, that is an eye-opening calculator. As a 22-year old who just graduated from college this past weekend and begin my job in a few months, I surely will begin saving right away. Thanks for the link and the calculator.

  3. This is great! Anything to promote starting your retirement savings immediately is a good thing. Once twenty-somethings realize what a difference it makes in the long run, they will be much more likely to begin contributions early.

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