Why You Should Start Saving Before 35: The Life-Changing Power of Early Financial Habits
Let’s cut to the chase: if you’re under 35 and haven’t started saving, you’re leaving money on the table – so, Start Saving Before 35. A lot of it. According to a 2023 report by the National Bureau of Statistics, only 23% of Nigerians under 35 have a consistent savings plan. That’s a staggering 77% who are missing out on the magic of compound interest, financial security, and the peace of mind that comes with having a safety net.
I get it. Life is expensive. Between rent, bills, and the occasional indulgence (because, let’s be honest, you deserve it), saving can feel like an impossible task. But here’s the truth: the earlier you start, the easier it becomes. And the rewards? They’re life-changing.
In this post, I’ll break down why saving before 35 is non-negotiable, share actionable tips to get started, and show you how small steps today can lead to massive gains tomorrow. Let’s dive in.
1. The Magic of Compound Interest: Your Money’s Best Friend
Albert Einstein famously called compound interest the “eighth wonder of the world.” And for good reason. When you save early, your money doesn’t just sit there—it grows exponentially over time.
Here’s how it works: let’s say you start saving ₦20,000 monthly at 25, with an annual interest rate of 10%. By 35, you’d have saved ₦2.4 million, but thanks to compound interest, your balance would be closer to ₦4 million. Wait until 45, and that number balloons to ₦11 million. Start at 35 instead of 25, and you’d only have ₦6 million by 45. That’s a ₦5 million difference—just for starting a decade earlier.
The math doesn’t lie. The earlier you start, the more time your money has to grow. And trust me, future you will thank present you for making this decision.
Actionable Tip: Open a high-yield savings account or invest in low-risk mutual funds. Even small amounts can grow significantly over time.
2. Financial Security: Because Life Loves Curveballs
Let’s face it: life is unpredictable. A sudden job loss, a medical emergency, or even a global pandemic can throw your finances into chaos. Having savings isn’t just about building wealth—it’s about protecting yourself from the unexpected.
A 2022 survey by EFInA revealed that 64% of Nigerians lack access to formal financial services, leaving them vulnerable to financial shocks. By starting to save before 35, you’re not just preparing for the future; you’re creating a safety net for the present.
Actionable Tip: Aim to save at least 3-6 months’ worth of living expenses in an emergency fund. Start small—even ₦5,000 a month can make a difference.
3. Achieving Big Goals: Dreams Don’t Fund Themselves
Want to buy a house? Start a business? Travel the world? These dreams require more than wishful thinking—they require money. And the sooner you start saving, the sooner you can turn those dreams into reality.
Take homeownership, for example. The average cost of a 3-bedroom apartment in Lagos is around ₦30 million. If you start saving ₦100,000 monthly at 25, you could have a down payment by 35. Wait until 30, and you’ll need to save almost double that amount to reach the same goal.
Actionable Tip: Set specific savings goals and break them into manageable chunks. Use apps like Cowrywise or PiggyVest to automate your savings and track your progress.
4. Breaking the Paycheck-to-Paycheck Cycle
Living paycheck to paycheck is stressful. It’s like running on a treadmill—you’re working hard but going nowhere. Saving early helps you break this cycle and take control of your finances.
A 2023 report by BudgIT found that 70% of Nigerian workers spend their entire salary within two weeks of receiving it. This leaves little room for savings or investments. By starting early, you can build a buffer that allows you to breathe easier and make smarter financial decisions.
Actionable Tip: Pay yourself first. Set aside a portion of your income (even 10%) as soon as you get paid. Treat it like a non-negotiable expense.
5. Building Wealth, Not Just Surviving
Saving isn’t just about surviving—it’s about thriving. It’s about creating opportunities for yourself and your family. It’s about building a legacy.
Consider this: if you save ₦50,000 monthly from 25 to 65, with an average return of 10%, you’d have over ₦100 million by retirement. That’s the power of starting early.
Actionable Tip: Diversify your savings. Consider investing in stocks, real estate, or side hustles to grow your wealth faster.
Conclusion: Start Saving Before 35
Saving before 35 isn’t just a smart move—it’s a game-changer. It’s about taking control of your financial future, protecting yourself from life’s uncertainties, and creating opportunities for yourself and your loved ones.
The best part? You don’t need to be rich to start. You just need to start. Whether it’s ₦5,000 or ₦50,000, every naira counts. And the sooner you begin, the more you’ll thank yourself later.
So, what are you waiting for? Start saving before 35. All you need to do is open that savings account, set up that automatic transfer, and take the first step toward a brighter financial future. Your 35-year-old self will thank you.
