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I talked with my husband earlier this week about writing this post, and when I asked why he thought it was important for people to invest wisely, he quickly replied “So you don't have to use coupons forever!”
Ahem. Clearly he doesn't realize we'll be clipping coupons until the day we die. Even if we have a billion dollars. (Sorry, honey.) 😉
However, in a tiny way he's right. Back when my husband got his first “real” job out of college, he immediately opened an investment account for retirement. At that point he didn't have any debt, and knew just enough about investing to understand that starting early could change his financial future.
Because that's the way he started, it's what we've always done. We've always known that a certain portion of our income was untouchable, and it's automatically gone towards retirement savings from the very beginning.
I realize though that we were incredibly fortunate to start things out early that way. The fact that he was out of debt from day one gave us so much more freedom to save for retirement. He was also incredibly fortunate to receive wise financial council from the very beginning (which I'm so thankful for!) However, not everyone is in that boat, and you may be someone who just doesn't know where to even start.
Whether you have a little money or a lot of money to save towards investments, every penny you save now towards retirement will be worth it. My dad talks a lot about the “Rule of 72” when we talk about investing (he's smart like that), and while it's not perfect advice, you can bet within reason that on average, every seven years, the money that you're investing now will double.
Double. Every seven years. Did you hear that?
Over the course of time, that doubling can really add up, and while it can be difficult to choose to put money into savings when you'd rather spend it else where, watching your own money grow over time can be some great motivation to keep at it! Check out this Investment Information from Dave Ramsey that I thought was invaluable . . .
Even if you’re 40 or 50 and don’t have a retirement account, it’s never too late to start. If you are 40 and save just $2,000 a year in a 12% mutual fund, you will have nearly $334,000 by age 65—or more than $425,000 if you wait until 67 to retire! While you won’t have the most luxurious retirement, you can draw a decent yearly income—about $34,000 if you account for 4% inflation—from the interest by leaving that money alone.
So, where do you start? If you're new to investing and just don't know how to begin, contact one of Dave Ramsey's Investment Endorsed Local Providers today. There are so many things you can start investing for, but you'll never make a dent in your financial goals if you don't get started.
Take a few minutes today to find out how to get started investing (and learn if you're investing enough), by talking to a local, trusted advisor. Go HERE to contact an Investment Endorsed Local Provider in your area, and find out what you can be doing to change your financial future!