Fast forward to your 20s. You are loving life because you have the career you want, live in a great apartment, and can afford to enjoy life outside of work. After paying your bills, putting money in your emergency fund, and saving a little money for your vacation this summer, you still have $400 each month left over. What would you do with that extra money?

Now that you have learned about investing, would you invest that $400? If so, how?

Investing consists of buying assets that can make money for you but with the risk of loss. You can achieve a higher return in exchange for more risk. Some investment options you learned about include real estate, stocks, mutual funds, and bonds. All of these have their different risks and rewards.

The earlier you start saving for your future and retirement, the longer your investments will have a chance to compound and the more money you will have. Who does not want more money!

Does money actually grow over time? Take a look into your future and decide for yourself! Each scenario shows the results of investing starting at a different stage of your future life.

Go back to the beginning of this video when you were in your 20s. You have a great career, hanging with friends, and living life.

At 25 you decide to take everyone's advice and open a retirement account that invests in mutual funds and stocks. You invest $5,000 each year until you are 65. The total you have invested is $200,000 over 40 years.

Wow how time flies! You are now 35 years old. You met the love of your life and are married and purchased a house. You wish you had started investing in your 20's but never got around to it. Now that you are married maybe it's a good time to start!

At 35 you invest $5,000 each year for retirement until you reach 65. The total you have invested is $150,000 over 30 years.

How did I get here so soon? You are 45 years old. You are married, have a child, and more bills coming in. You still can manage an extra $5,000 a year. You never did start that retirement account so you decide at 45 you should start. You invest that $5,000 each year until you reach 65 to put towards retirement. The total you have invested is $100,000 over 20 years.

Which future self has the most saved for retirement? You may be thinking the one who invested the most is the one who has the most. You are correct but how much more did your money grow over time? See for yourself.

Your return on your investments was 7%. Using a compound calculator you can see what you would have saved for retirement:

Age 25 Future Self: $1,142,921

Age 35 Future Self: $543,427

Age 45 Future Self: $238,675

Wow!! You could be a millionaire at 65 if you start investing in your 20s. Who's living life now?

Remember, starting young is the best way to get ahead.