A Wealth Building Habit That Transforms Your Future
Published / Last Updated on 06/10/2020
Always use this simple wealth building habit to transform the ‘end game’ for your savings, pensions and mortgages.
E.g. £200pm pension contribution increasing at 0%, 2.5% pa and 6%pa. That’s the equivalent in year 2 of either an increase to £205pm or £212pm. This is nothing in the big scale and you probably spent more than that on a train fare, a few drinks or a couple of snacks or sandwiches.
At 0%pa increases
- Your pension at 4%pa growth is worth £72,792 at year 20 and £137,099 at year 30
- Your pension at 7%pa growth is worth £101,608 at year 20 and £234,122 at year 30
At 2.5%pa increases
- Your pension at 4%pa growth is worth £90,039 at year 20 and £186,731 at year 30
- Your pension at 7%pa growth is worth £122,883 at year 20 and £303,738 at year 30
At 6%pa increases
- Your pension at 4%pa growth is worth £124,181 at year 20 and £305,573 at year 30
- Your pension at 7%pa growth is worth £164,213 at year 20 and £463,176 at year 30
A 6%pa increase each year is not huge when you look at the overall picture e.g. Year 1 = £200pm, Year 2 = £212pm, Year 3 = £224.72pm but it can mean more than doubling your pension or savings fund at year 30 and even at year 20 it could mean a 70%+ bigger fund.
Do it every time you get a pay rise or even if you don’t. It is a habit that will help you maximise your pensions and savings and cut the time your have a mortgage for if you overpay in the same way.
Get into this wealth building habit right now.
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