Watch the Pennies and the Dollars Will Take Care of Themselves
Whoever you are, whatever you do, there is one thing that is true of us all: no one’s getting any younger. I know, the truth hurts. But financial freedom comes only to those who get real about this fact and act now, rather than later. A case of ‘the early bird catches the -financial- worm’.
There’s something else that a LOT of people have in common: they are not forward-planning or putting away money for the future, don’t even own a savings account and have a huge number of excuses for why not. No time, not enough disposable income, etc. etc. The usual suspects. The misconception is that you should be wealthy to invest, or that it’s a risky business, but this is far from being the case.
How many people do you know at 25 paying into a retirement fund? A ball park figure? Not many, if any. So, if you invest at all in your 20s and early 30s, you’re already way better off than 90% of your friends. It’s understandable not to be thinking retirement when you’re not even out of college, but this is child’s play. Read on.
No more shy and retiring
Investment does not have to mean you have to be a whiz with numbers or a trader on the stock exchange. Don’t be put off: it is simply a case of learning the basics of good money management and opening a couple of high-return accounts to start seeing the dollars roll in.
A retirement account can be the key to savvy saving and have you living in the lap of luxury by the time you reach your golden years.
Don’t be fooled into thinking these accounts are simply a place to put your money until you’re 65; there are huge tax benefits to saving and investing over long periods of time. In exchange for your long-term commitment, the advantages are greater than with regular investing accounts. 30 years gaining 10-20% tax on top of your savings works out as a lot of money- you do the math.
A Little Now for a Lot Later
Ramit Sethi, author of “I Will Teach You to Be Rich”, lays it on the line, saying:
“If you start a retirement account in your early 20s or 30s and fund it regularly, you will be rich.” – Ramit Sethi
So, if it’s that easy, what are you waiting for? Sethi claims the 3 most important factors for investing are:
- Do your research
- Be disciplined
- Start early
He works on the premise that the earlier you start the better: “Imagine if you had started investing $10 per week five years ago, receiving an average 8 percent return? By now, you’d have thousands of dollars – all from investing a little more than $1 per day. Think about that $10 a week – where did it go, anyway?”
Every dollar you invest now is worth many more times that in the future. The most lucrative options are retirement accounts or Roth IRAs- or better still, a combination of both. For more information, do a little research or check out “I will teach you to be rich” official website. No more procrastinating: by this time next week you could have changed your financial future for good.
I’m certainly convinced. See you in Aruba in, say, 30 years?
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