Procrastination ranks high on the list of reasons why people do not achieve their financial goals. Whether through lack of information, fear of making a wrong decision, or waiting for the time to be right, procrastination wastes valuable time in which your money could be working to achieve financial success. In short, procrastination costs. Every year of delay dramatically reduces the size of your retirement savings, or makes your goals increasingly difficult to reach. This calculator will show you the dramatic impact of starting an investment program now versus delaying the decision to start one.
Single Deposit Amount: Enter an amount of money you might invest this year, but that you are considering using for something else instead.
Annual Deposit Amount: Enter the amount of money you will add to your investment each year.
Rate of Return: Enter the annual "rate of return" on your investment; that is, the percentage at which your investment will grow each year. You can find out about average annual rates of return on potential investments by checking out the investment's website or prospectus.
Years of Growth: Enter the number of years until you stop investing and withdraw your money. In reality, you are probably not going to withdraw your investment all at once. Instead, you are more likely to take it out in bits and pieces, or at a steady rate each year. However, for the sake of seeing the effect of delaying investing over time, just pick a number of years until you will have stopped adding to your investment. For most people, this will be the number of years until retirement.
Years Delayed: Enter the number of years from now when you think you will finally start investing.