A friendly reminder that time + compound interest + average long-term stock market returns = magic.
This isn't for everyone, but if you're doing well in your 20s, you can trade some lifestyle now for 10x lifestyle later. If you hold back just a bit, you'll reap the rewards later.
The numbers: investing $100 a month will yield you roughly $100,000 in 30 years or $260,000 in 45 years, given a 6.0% annual rate of return. I argue that you should do this in addition to existing retirement savings.
A few ways to save an extra $100 a month that won't cramp your existing lifestyle:
- Cut the cord (stop paying for cable)
- Cut other non-essential recurring fees
- Skip a night out to eat and/or at the bars
- Cheaper gym membership
- Drive a few days of Uber or Lyft
Enjoying an extra $100k when you're 52, or $200K when you're 60 should be relatively straightforward :)
Submitted January 09, 2017 at 09:04PM by stackinpointers http://ift.tt/2jneI20
