“For the first time, U.S. life expectancy has surpassed 78 years, the government reported Wednesday.” According to an msnbc article I caught while checking the day’s headlines. What does this mean? Well most people would be delighted immediately thinking of the extra time they potentially have. How many consider the financial aspects of this? As we progress with medical science and our life spans grow longer those who have not saved enough money will find themselves in a bad situation towards the latter years of their life.
When you are in your twenties you have all the time in the world; At least that’s what you think! As you brush off savings time creeps up on you! Before you know it you will have a house a family, and bills that come along with all that. Saving will become increasingly harder to get a grip on. As you get older, you have to save more if you are starting from scratch. You’ve heard of the 10% rule which states save 10% of your money and you will be fine. Well, that’s if you start early and continue saving until you retire.
I have been saving for retirement since I turned 22. It’s almost been 3 years now and I think it’s exciting. I’ve saved up a nice pile of money and have learned many things in the process. The part I enjoy most is watching it grow. Small contributions every two weeks make a significant build up over time, then factor in compound interest on gains from my portfolio and things are great. What started me off was the concept of free money. When I took my last job I was filling out initial paper work and I came up to the 401k. I had no idea what it was, so I just opted out. Shortly after I started the job I read up on it, then I discovered my employer was matching dollar for dollar up to 5%. I thought to myself well that’s free money! Ever since I’ve been hooked!
Small contributions add up over time, and the best time to start is now!
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