Who wants to be a millionaire? Time is the precious asset for building a roadmap toward this goal.
If you start saving for retirement at age 25, you only have to save about $4,830 annually to reach $1 million by age 65, assuming an annual return of 7 percent. That equates to $365 a month, an attainable amount provide you are making sound financial decisions.
The act of saving is like developing a muscle, and if you start early with small amounts, you will build a superior savings physique. However, if you wait until age 40 to start saving, you’ll need to tuck away at least $15,240 per year, or $1,270 per month. Just like muscle development, this type of crash/overloading can lead to injuries or difficult fiscal decisions.
Bottomline – Start early, commit to a long-term savings plan and stay positive. You can do it!
Coyote quote: “Too many people buy things they don’t need, with money they don’t have, trying to impress people they don’t even like.”