The answer is very simple: Start Now! Everyone has already heard their parents, grandparents, friends, investment advisers, bosses, the news, magazines, financial blogs, etc., tell you for YEARS that you should start saving for retirement. But how come so many people wait until it is too late? One reason I can say with absolute certainty is because many people think they need a large sum of money in order to make a difference for their financial future. This is absolutely NOT true! A small amount of money adds up to millions at retirement. And who can we thank for this? The magic of compound interest.
Lets take a look at an example. If you are 25 years of age and put away just five bucks a day into a retirement account with an average return of 10%, by the time you are age 55, you will have over 1.1 MILLION DOLLARS. Wait, what do you mean!? Yes, you now have the formula to become a millionaire, you are very welcome. This also applies to someone that is 35 years of age to 65. If you are above age 35, you may have to save a little more per day, but it is absolutely possible for you to save to a million dollars at retirement.
I do not care who you are, ANYONE can scrape together five bucks a day. Start a side hustle, skip your morning Starbucks run, bring a lunch from home, cancel your cable, stop buying bottled water, start clipping coupons, do WHATEVER it takes to ensure your financial future. Trust me, you will not regret it.
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