Why You NEED to Worry About Retirement Now – Part 1
When you’re in your early 20s you don’t have much to worry about. In fact, most of you are probably just concerned with whats for dinner tonight. Should you have Chipotle for the third time this week or go get a burger? Tough choice I know. What if I told you that your decisions about retirement now could cost you hundreds of thousands of dollars in the future. Are you worried about it now? I hope so.
This is the first part in a multi-article series on setting yourself up for a successful retirement. This may seem like a dry topic but I’m going to show you how you can be a millionaire someday. I’ll cover the basics of basics and go into some more complicated scenarios in the weeks ahead. Also, this isn’t just for people that are just starting into their career. It doesn’t matter if you are a freshman in college or 30 years old, all of this is applicable. With that, let’s jump into why you need to worry now.
I want you to ask yourself a question right now. Do I have anything in savings or have a plan to start saving? This is a tough conversation that most people aren’t having. According to a Go Banking Rates survey, 57% of people said they had less than $1,000. The survey goes on and on about how people aren’t saving young then try to play catch up later in life. Unfortunately, it doesn’t work that way. Fidelity, which is a bank focused on investing for retirement, says you should aim to have 1x your salary saved by the time you’re 30 and 3x by the age of 40, these numbers aren’t crazy. Unfortunately, to most people, they seem ridiculous.
Now we’ll talk about compounding interest and how much you need to be contributing down the road to blow these benchmarks away but I want you to look at this chart and ingrain it in your mind first.
This basic chart, which I will reference multiple times as the weeks go on, tells the story of four people: Consistent Claire, Delayed Danny, Quitter Quinton, and Late Laurie. Now hopefully their names are dead giveaways to their saving habits and from the chart, you should be able to see that you want to be Consistent Claire, the millionaire.
If you are ready to learn how to become her or know a friend that might need some help then subscribe to the email list here.
Now let’s all become millionaires!