Interest Compounding has a wonderful effect on our savings. When you start young and let compounding work its magic, achieving your retirement goal is very easy. This is why many financial bloggers including, yours truly, espouse on the importance of starting to save in the early stages of working life. Using Mathematics Regular readers of this blog will know of my penchant of relying on boring Mathematics to convince, so here comes the maths :) Two individuals, Alan and John, enters the workforce at 25. Knowing the effects of compounding by saving when young, Alan decides to set aside $10,000 yearly from age 25 to 60. John, on the other hand, being a millennial with a YOLO life, only realizes during his mid-career the need to plan for retirement. John immediately starts to set aside $20,000 yearly from age 40 to 60. Both Alan and John invests in the same investment which ......