Contribute Early, Contribute your Maximum !

Contributor Number 1 - Annual Contribution $1,500/year-from age 25 to 55 - Total Investment $45,000 - Value ate age 55 $141,691

Contributor Number 2 - Annual Contribution $3,000/year-from age 40 to 55 - Total Investment $45,000 - Value at age 55 $75,387

RRSPs are on your side, they allow your savings to grow tax-free. The longer your money stays in a tax shelter, the better. Though it's not always easy for young graduates or young families to start contributing to their RRSPs because it's so far off, the earlier you start the better.

Contribute your Maximum: For any given tax year the law allows you to contribute an amount equal to 18% of your income from the previous year. If you haven't contributed your maximum in previous years you may have unused contribution room, which you can now use. You can event borrow money to compensate for this excess contribution room.

Contribute by Regular Installments: If you want to contribute a significant amount without bursting your budget and getting crushed in the February rush then just contribute throughout the year. You can create a regular installment plan and have the money withdrawn directly from your account.

watch how your contributions can grow:

Weekly $10 contribution

fter 10 years - Capital Invested $5,200 -Value of RRSP $7,239
After 20 years - Capital Invested $10,400 - Value of RRSP $20,797
After 30 years - Capital Invested $15,600 - Value of RRSP $46,193

Weekly $50 contribution

Time span Capital invested Value of RRSP

after 10 years - Capital Invested $26,000 - Value of RRSP $36,193
after 20 years - Capital Invested $52,000 - Value of RRSP $103,985
after 30 years - Capital Invested $78,000 - Value of RRSP $230,966

Now no one can say they don't have $10 a week that they could put away to secure their financial future. Even if you don't you can start with $5 any step is one in the right direction.