Time is money. And at this age it's also on your side when it comes to investing and saving. The sooner you start, the wealthier you become because of compound interest, the money earned on your initial investments and the already-accrued interest.  

We often don't realize the importance of saving early and using the principle of compound interest-easy money-to our advantage.  

bill and jill

For example, Bill and Jill are both recent graduates. Bill starts investing right away, while Jill waits until she's 35. Both plan on retiring at age 55.  

Bill invests $2,000 a year for 10 years ($20,000 total), and lets it grow until he's 55. Jill saves $2,000 a year, starting at 35, until she is 55 ($40,000 total). If they earn an average annual rate of 8.7%, who will have more money for retirement?

 As the graph illustrates, even though Bill invests less money than Jill, he ends up with a lot more money at retirement and has 122,863 more reasons to celebrate his early farewell to the workforce. Jill, since she starts investing at 35, would have to contribute $4,484 a year to match Bill's nest egg.  

Investing early allows more time for compound interest to work for you. Even if you only save small amounts now, they add up exponentially over time. Check with your local credit union to find the best way to invest in your future. Because, as every successful investor will say, the best time to start saving ... is yesterday.