Posted by forex at 4:41 AM
Read our previous post
1. The first thing to realize is that the cost of living always seems more relevant than the cost of saving. The reason for that is cost of living is something you can tangibly see right away, where as cost of savings is an abstract idea that pays over time. Time is truly your friend in this scenario and I challenge you to think abstractly about the ten bucks you are going to invest. The reason I chose that amount is because it seems a reasonable amount that almost anyone on a budget or low on cash can come up with every week.
2. The trick to this method is taking 10 dollars a week roughly the amount you spend maybe on a cup of coffee a day and having it either auto deducted from your paycheck into a money market account or some type of mutual fund, your choice. Historically the long term return on investment in stock has always been a rough 8% which means the 10 dollars you invest weekly over a ten year period will calculate to roughly 6555 dollars after taxes. The picture on your left is how I calculated the information. Please follow the link at the end of the article titled "Money Calculator' to see what you come up with. Trust me it is worth at least 1 minute of your time.
3. Last but not least. I know exactly what you are thinking "how can this help me?" Let me explain. As you reach retirement you want as many revenue streams as possible. The reason for this is that it helps you diversify your income which means if one income stream takes a hit your whole income does not. In addition the small amounts help you offset the cost of daily living expenditures which in turn will help you not go into debt. Plus you can not rely on the government to take care of you. Most likely social security will be nothing more than government cheese with in the next few decades. So plan ahead and make sure the plan is not only attainable but sustainable.