Millennials Who Start Saving Now Will Benefit Later
Being a recent college graduate, the thought of saving for retirement seems crazy. No doubt, other Millennials feel the same. We have 40 to 50 years before retirement and people are telling us we need to start saving for it! It may be that we don’t know where to start, have too many student loans, or perhaps we want that new car instead. Whatever the reason, just remember that it does not usually get easier later on.
Starting the habit of saving now will pay off because time is on your side. For example, a 22-year old person recently graduated from college could work up to 45 years, if not more, before retirement. Putting away just $5 a day in a long-term investment account earning 8% per year would yield over $800,000 by the time they retire at age 67.
So the same amount you spend on that deluxe coffee every day could really add up. It’s okay to start out small and increase your savings over time as your budget allows. Try setting aside a portion of extra paychecks, bonuses, and tax refunds. Also, take advantage of your employer’s retirement plan matching contribution. It’s free money!
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