If you’re reading this, you’re most likely a high school or college student. The thought of saving money doesn’t exactly excite you. But it’s important that you do. Your goals probably include getting a job, not retiring. But retirement will happen much faster than you think. Saving now will make the future a much better place.
You might be thinking “This is stupid, I could be using my money now to buy a new video game every week or I could have the newest iPhone.” Truth be told, you could do those things or maybe you already have. But now is still a great time, if not the best time, to start saving.
Still not sure if you believe me? What if I told you that you could save a little bit of money now and have a ton of money later?
Interested?
Follow along.
To illustrate my point, let’s take a look at Mike. Mike opens a Roth IRA on his 18th birthday. He puts 2000 dollars into the account that averages a return rate of 8%. He retires at 65. Guess how much money he has.
74 thousand dollars!
I’m not making this up, it’s just the way the math works.
But if Mike waits a few years and doesn’t start his account until he’s 25, he’ll loose 27 thousand dollars. This is why it’s so important to start now. By waiting, you are literally throwing money away.
If you thought that a single deposit of 2000 dollars resulted in a ton of money later, imagine what adding more money every year will do.
Adding 2000 dollars every year will net you over a million dollars.
I think a million dollars is worth spending just 2000 a year.
If you want to make a financially secure future for yourself, the time to start is now.
