Is 25 years Old too Late to Start Saving?

Is 25 years Old too Late to Start Saving?

A lot of people might think it is too early to start saving at the age of 25. In fact, it is not early to start. Some financial expert could even argue that it is too late to start saving at the age of 25, because they believe in the power of compounding.

Miguel Valdespino

At any point in your life, if you start saving you are better off than if you didn’t save.  Yes, it would have been great if you’d have started saving earlier.  But since you didn’t, you need to save what you can now.

Stephanie Vardavas


It is never too late to start saving, and in reality, by starting at 25, you will be doing better than many, many people. Plenty of people don’t get serious about saving until their late 20s or even their 30s.

M. A. Steinberger

Saving for the future is like planting a tree. The best time to do it is ten/twenty/fifty years ago.

Today is better than tomorrow/next week/ten years from now.

Twenty-five gives you a head start on most.

Too many people hit retirement always meaning to start saving, but putting it off again and again.

Sven Skoog

In fact, the difference between starting to save at age 25 versus age 30 will mean your money nearly doubles one more time before retirement.

Rule of 72 = your investment will double every (72 ÷ interest rate) year

So, for a 7% investment (stock market index), your $$$ increases every ten yrs.

So, for an 11% investment (job pension w. match), your $ doubles every 6.5 yrs.

Try starting with, say, $15,000 at year 30, projecting out 7% or 11% interest on a spreadsheet until age 65 or 70, then try doing it again from age 25.  Notice the 40% growth difference (assuming 7% interest) or 68% growth difference (considering 11% ROI) — that’s nearly an order of magnitude.