CNBC crunched the numbers, and we can tell you the amount that investing your extra cash will equal when you are ready to retire.
Just a few things to remember: These numbers assume you put the money in a retirement account, you will get a 4% return on your investments and that you will retire at age 67.
The math also does not account for taxes, fees or any curveballs that life may throw at you. So plan accordingly.
Here’s a case study for people who start saving at age 20.
Investing $100 per month will grow to more than $160,000 when you are ready to retire in 47 years.
At $500 a month, the same 20-year-old would retire with more than $800,000 if they stuck to their saving.
If you bump that number up to $1,000 per month, your total will grow to over $1.6 million for retirement.
Starting younger lets you take advantage of the power of compound interest. That means you get returns on the money you invest — and, even better, returns on your returns.
Check out this video for a full breakdown of how much money you can expect, broken down by age.
