Okay, back to the 10 reasons you are not rich. We have already looked at:
Now for reason #4….
Let’s assume you invest for ONLY 5 years and then stop (I assumed a rate of return of 8% and a retirement age of 65). Look at how much more you would need to invest the later you start:
- $100 a month from the age of 20-25 is the same as…
- $225 a month from the age of 30-35 is the same as…
- $475 a month from the age of 40-45 is the same as…
- $1100 a month from the age of 50-55 is the same as…
- $2250 a month from the age of 60-65
As you can see, it is easier to make larger amounts of money if you start early. That is only if you save money and stop. You will save even more if you continue to save from a young age.
You can utilize this same principle with your children’s accounts. Start a savings account early! If you save:
- $25 a month from the month your child is born to age 18, it will become 12K
- $50 a month will become 24K
- $100 a month will become 49K
Cut coupons, turn down your heat, or any other money saving technique to try and put away $25 a month for your child and your finances (and your children) will thank you. As with all investments, a specific rate of return is never guaranteed! However, your
On to Reason #5 You Don’t Like to Learn
- 5 Cheap Ways to Lower Monthly Necessity Bills
- Sending Your Child to College: Money Tips for Parents
- Should We Save our Kids from Consumer Mistakes?
- Seven Ways to Save on Kid’s Clothing
- How I Disagree with Dave Ramsey