We aren’t talking about the exterior of a boat – but the effects of compounding on your money!
So What Can You Do With Your Money?
Think of a snowball rolling down a hill, picking up more snow as it goes, getting bigger all the time. This can also happen to your money – it can grow bigger over time as you earn interest on your interest, meaning even small amounts can be worth putting away for the future.
Interest rates are starting to come down but there are still good rates out there if you shop around. What can you get back for a 5% rate?
If you save £1,000 every year at 5% return, after ten years your money will have grown to £14,835.68. After 20 years you will have £37,372.55.
Just think how much your money could grow to if left even longer. This is why even small amount saved for the future can make a difference to your options later in life. And the earlier you start to save, the more years that money has to grow. It is far easier to start to save small amounts for retirement while you are young with time on your side, than to play catch up, starting to save later on with fewer years for the funds to grow.
In addition, if you are saving in a pension you will also benefit from tax relief, effectively a top-up from the government. That’s a whole different topic, but if you want to find out more about how you can save now for a better tomorrow, speak to a financial adviser.
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Email us at: hello@crewfo.com 📧
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At Crew Family Office, we are here to help Superyacht crew navigate their finances and make the right decisions.
For more of our financial services, designed for Superyacht crew, take a look here.