Under 25? Saving a little now can mean having a lot more at retirement.
The most successful investors understand why time is often the most important variable to consider when developing a savings plan and retirement strategy. Many people are settling into their careers before they get around to saving regularly, and most never have an idea if they’re saving enough to have the retirement they envision. But if you develop a plan to save a little early—and be consistent about it—it can really pay off.
If you're just starting out on your own, you may be wondering why you should consider putting something away for your future (especially if you’re not quite on your feet yet in the present). But if your budget allows, you could start saving early, invest your money wisely, and take advantage of something you’ve probably heard of before: compound interest. How much difference does compounding make? You'd be surprised:
If you're just starting out on your own, you may be wondering why you should consider putting something away for your future (especially if you’re not quite on your feet yet in the present). But if your budget allows, you could start saving early, invest your money wisely, and take advantage of something you’ve probably heard of before: compound interest. How much difference does compounding make? You'd be surprised:
Starting at age 25 with just $100 per month could yield nearly $150,000 more at age 65 than if you started saving the same amount in your mid-30’s. Beginning at age 22—just 3 years earlier—could mean an extra $50,000 in your pocket on top of that: $200,000 more than someone who begins at 35.
A 22-year-old who could consistently put $250 a month toward a solid investment yielding around 7% annually could be well on their way to a million dollars!
But if you can’t afford to put $250, or even $100 away each month, don’t worry—commit to a number that’s comfortable for you, and then stick to it! A 22 year-old who saves just $25 each month could have about $80,000 more by age 65 than if he/she saved nothing at all.
However you manage it, starting to save early will get you in the good habit of putting away a set amount each month, and will allow you to benefit from the wonders of carried interest, so get going!
Find more resources and tips for managing your finances in the Grow With Brio section, or see how Brio can help you make a plan for retirement.
*THIS ARTICLE IS NOT INTENDED AS, AND SHOULD NOT BE USED AS INVESTMENT ADVICE. See Disclaimers.
A 22-year-old who could consistently put $250 a month toward a solid investment yielding around 7% annually could be well on their way to a million dollars!
But if you can’t afford to put $250, or even $100 away each month, don’t worry—commit to a number that’s comfortable for you, and then stick to it! A 22 year-old who saves just $25 each month could have about $80,000 more by age 65 than if he/she saved nothing at all.
However you manage it, starting to save early will get you in the good habit of putting away a set amount each month, and will allow you to benefit from the wonders of carried interest, so get going!
Find more resources and tips for managing your finances in the Grow With Brio section, or see how Brio can help you make a plan for retirement.
*THIS ARTICLE IS NOT INTENDED AS, AND SHOULD NOT BE USED AS INVESTMENT ADVICE. See Disclaimers.