Save early for high returns on investments.

Saving for retirement at an earlier age will earn you more money because compounding interest and time are on your side.

Investing at 20 Versus Investing at 30

A person that invests $5,000 from age 21-26 and no more will earn over 1.5 million dollars, given a 10% rate of return. A person that invests the same amount from age 31-36 and no more will earn just over half a million. That is a million dollars less than their saavy twenty year old counterpart.

Break Down Retirement Savings by Day and Not Per Year

If $5,000 per year is too big of a number for you to swallow just yet, $3,000 per year from age 21-26 will yield about 1.4 million and from age 31-36 it will yield about $450,000. $3000 per year is only $250 per month or $8.33 per day. $5000 per year is $415 per month or $13 per day! It isn’t so intimidating when you break down the math, and it is something that is completely achievable minor sacrifice and responsibility.

How to Save for Retirement Without Sacrificing Life
Putting away $20 here and there beats putting nothing in. The goal should be to cut costs where possible, and not completely forgoing all fun and excitement. If you know you buy a soda everyday at work the vending machine for $1.50, but a six pack at the grocery store instead for $3.00. Three six packs will cost you $9 per month, while a daily bottle at work will cost you $30 per month. Just that minor tweak in your budget saves you $21 that you can put towards your retirement. There are also other ways to come up with extra retirement money, including using your tax return and changing tax withholding for instance.

It is Never too Late to Save for Retirement

While it might be true that yesterday was the best day to start investing, that doesnt mean that today is a bad day. Think about how happy future-you will be knowing present-you made such a valuable commitment to bettering life. Pay yourself first, and you’ll always be rewarded.

For more information on retirement planning, seek the advice of a financial planner.