If you were to save ushs 100,000 per month in an investment account starting when you are 20 years old and you do this consistently until you retired at 55 years you will have an investment of ushs 379,663,805.
The total principal saved will only be ushs 42 million. This means that the net gain earned will be ushs 337,663,805. This all happens because of the magic of compounding. We have assumed an interest rate of 10% per annum in this scenario.
If you don’t touch your investment at retirement you will be able to earn ushs 3,163,865 per month without lifting a finger. This is not a bad way to retire. And all you had to do was save and invest ushs 100k per month!