The Beginner’s Guide to Investing

# Here's exactly how much money you'll have in retirement if you save \$1,000 a month

VIDEO1:0701:07
A 36-year-old who learned to invest like Warren Buffett explains how saving can actually cost you money

Even if you're decades away from retirement, experts recommend that you start saving, and investing those savings, as early as you can.

That's because the longer your money sits, the more time it has to grow. Compound interest allows any interest earned to then accrue interest on itself, so over time a small amount of money invested earlier will earn more than a large amount of money invested later.

CNBC calculated how much you'd have by age 67 if you put away \$1,000 a month starting at various ages.

## If you start saving at age 25

With a 4 percent rate of return: \$1,309,526
With a 6 percent rate of return: \$2,281,511
With an 8 percent rate of return: \$4,147,964

## If you start saving at age 30

With a 4 percent rate of return: \$1,018,026
With a 6 percent rate of return: \$1,639,464
With an 8 percent rate of return: \$2,734,509

## If you start saving at age 40

With a 4 percent rate of return: \$583,758
With a 6 percent rate of return: \$810,579
With an 8 percent rate of return: \$1,148,989

## If you start saving at age 50

With a 4 percent rate of return: \$292,465
With a 6 percent rate of return: \$354,997
With an 8 percent rate of return: \$434,675

It's important to keep in mind that these calculations don't account for the many variables that can affect wealth over several decades, including windfalls, emergencies and rises or dips in the market. And, of course, saving hundreds or thousands of dollars a month is an ambitious goal, more than most Americans can manage.

Still, getting into the habit of regularly saving any amount will be great for you in the long run.

Here are a few simple, low-stress ways to start investing: