Now there are more then just two ways I could start saving up this money, but I believe of all the options, I picked the two most economical and logical. As of right now I am only 20 years old and still have 5 more years until I start saving for this retirement account. So the first option is go ahead and start saving now, it doesn’t necessary have to be $1,200 a month like it would be when I do start at age 25, but I can just put in what I’m financially comfortable with doing. Therefore when I am 25, I already have X amount in there and I might not need to put $1,200 a month in the account I might only need to do $1,000 or so. The reason why I want to start saving at age 25 instead of 20 or 21 is because of being single and being currently in college. Since I’m trying to pay for college at the moment, I feel that it is smart not to start saving until I’m 25 because if I start now I might not have enough for emergences or other things that happen in college.
The other option I have is that I’m planning on being married by the time I am 25 year old so I would be using this as a joint account instead of an individual account. With th...
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...ame numbers like investing $1,200 a month at 7% interest and stopping to retire at age 65, you would only have $1,990,611, which is $884,135 less then if you started at age 25! If you didn’t start until you were 35, you would only have $1,360,235, which is $1,514,511 less then if you started at age 25! That is one and a half million dollars less you would have when it comes to your “finishing years”.
The moral of all of this is that time really is money when it comes down to these situations. I have been told by many people that you need to start putting away money as soon as possible because it really does at up at the end of it all. A quote I have heard from a great Christian financial advisor named Dave Ramsey was, “A good plan, executed now, is better than a perfect plan next week.” It is always better to start now and execute it, then saying you’ll start later.
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