Noone has ever complained about having too much money for retirement. Noone has ever said that saving that much money is easy as well. That’s why it’s better to invest early for retirement. Trust us when we say that there’s no better time to start than today when it comes to building up a retirement plan. Why even bother, you ask? Well, this money that you’re saving up is what you’ll be living off of when you quit working for good.
Start as early as you can
Money that’s invested early has more time to mature and compound. Getting certificates of deposits or time deposits good for a year can increase your savings exponentially, if done correctly. Imagine having $1,000 and a time deposit of 1 year with 2% interest. That’s $1,020 at the end of the year. Think that’s small? If you keep taking the money out and restarting your time deposit, in 5 years, that $1,000 will be $1,104.08, and that’s if you don’t add any money to it.
Invest in something
If you don’t want to save money this way, you can opt to invest in other things, like stocks perhaps. Not only would you have a secure place to have your money stay in, you’ll also be able to increase it even more. You can opt to buy study guides on how to invest money in the stock market, just to be sure if this type of investment is suited for you. Most people tend to get scared of losing money on stocks, but if you play your cards safe (i.e. utilities, electric companies, etc.) you’ll see some gains in the future.
Do some image training
Imagine yourself at age 70. Do you want to be checking your wallet or your bank book to see if you have enough money to last for the month? Or, do you want to be sunbathing off of the deck of a vacation cruise? Where you want to be in the future can help you better prepare for it today. Calculate how much you think it would cost you to live a comfortable life in the future. You’ll thank yourself in the future for saving up early.
Article Source:The Muse