We are always happy to receive emails from our listeners, and, on this show, Brian shares two different emails, one from someone beginning their financial journey and one from someone who is far enough along in his journey to see the fruits of his labor. The lesson from these listeners is simple: don’t let another day go by without saving for your future. Why are you waiting? Every day that goes by makes it harder to reach your goals. Start today to save and make it a part of your life that is automatic. Every dollar that you put away will help you build an army of soldiers that will work for you in the future.
Everybody wants to be a millionaire but it takes a bit of work to get you there. We would like to share some interesting (and exciting) numbers on how to accumulate a million dollars.
How to accumulate $1,000,000 by age 65 (10% Rate of Return)
Age 1 – Save $14.00 per month
Age 10 – Save $35.00 per month
Age 20 – Save $95.00 per month
Age 30 – Save $263.00 per month
Age 40 – Save $754.00 per month
Age 50 – Save $2,413.00 per month
The obvious benefit here is to start younger and let the compounding interest work for you.
We also mention in the show some great books you might want to check out:
•The Truth About Money – Ric Edelman
•The Wealthy Barber – David Chilton
•The Millionaire Next Door – Thomas Stanley and William Danko
The plan of attack –
•Make sure you have cash reserves – money in the bank.
•Retirement plan at work – this equals free money for you! Take advantage of it.
•Decide on what type of account you want to invest in. Roth, Taxable, etc. Research and find out what the initial investment amount is and what the minimums are.
•Make is systematic – make the investments each month and don’t stop.
•Dollar cost averaging – it protects you when the market goes volatile.
It is also important to note that investment products have changed a lot over the last 5 years. One great way to get a great diversified portfolio is to consider doing a target date fund. These funds are available through Vanguard, Fidelity, Charles Schwab and others. Most have no front end commissions and internal expenses of less than one percent. You choose the year that you think you will need the money (your retirement year), and they choose the asset allocation for you. The investments will start out aggressive and get more conservative the closer you get to your target date.
So, what are you waiting for? Take our advice and start putting soldiers in your dollar army! Put those dollars to work so you can enjoy what you love.