Everybody wants to get rich, okay, at least nearly everybody.
Sponsored links
Mortgage Loans
Solutions for Your Small Business. Business Begins Here.
www.business.com
FreeCreditReport.com
A Good Credit Score is 700 & Above. Click here to see yours for $0.
FreeCreditReport.com
Take Your Time to Get Rich
Everybody wants to get rich, okay, at least nearly everybody. You might have heard your parents say to you that you are young and everything is achievable for you right now. Well, I do not want to sound like that, but the fact is, that they were right.
Depending upon your age, you can get rich. While it may take time, it is very much possible. If you do the calculations, you will understand what point I am trying to make here.
You can save a little every day and put it away in a bank account only to see the way your money increases for you. For example, assume that you are a fresh graduate, about 22 and have begun your first job. Now, if you start putting away a hundred dollars every month in the IRA with an annual interest rate of ten per cent then when you turn 65, you will have a whopping $865,000.
For as less as four dollars a day, you will be able to save up enough to be a millionaire.
Time as well as compound interest will work for you and therefore, if you are in your twenties, then get together all you can to make that contribution to the IRA. Every day counts in your money growing for you.
Most individuals in their twenties will read this and think that they have many more commitments to complete and dreams to fulfil before they can think of putting away any money whatsoever. After all, you have children to care for, loans to repay, a mortgage and a new car or that latest HDTV. However, if you set your priorities straight and save as little as eleven dollars a day, you might be able to save enough. Nevertheless, you will have to give up something here and there to do that.
Most people spend their lives borrowing money from other people and then working all their lives to repay it. Now, think about this the other way round. You will not be borrowing money but be saving it. Thus, people will be actually paying you money to actually use it. Believe me, that is much more fun.
Now think about this. You have bought your new car, the latest model the one that you always wanted. Instead of that, if you bought a used one or an older model and save about $10,000 and keep it away in some tax-sheltered accounts, then you can get $600,000 when you turn 65.
On the other hand, by the time you turn 65 that car would already be too old to drive and you might have spent more on it.
While it might not convince you yet, it is always better to consider all the consequences.
As you grow older, it becomes harder to grow richer. The reason is that you have less and less time until you retire. However, if you are 32 and save $4,000 at ten per cent then you can have close to $975,000. At 42, you might get $350,000.
You must know that social security will not allow you to retire comfortably. Therefore, you do need a solid plan for your retirement right now or else you will find that you are too late.
Bookmark or share this article
Comments
No comments have yet been made.
