24 // COMPANY DRIVER // AUGUST 2013
PERSONAL FINANCE
Age |
Jack |
Jill |
22 |
$ 2,240 |
$ 0 |
23 |
4,509 |
0 |
24 |
7,050 |
0 |
25 |
9,896 |
0 |
26 |
13,083 |
0 |
27 |
16,653 |
0 |
28 |
18,652 |
2,240 |
29 |
20,890 |
4,509 |
30 |
23,397 |
7,050 |
35 |
41,233 |
25,130 |
40 |
72,667 |
56,993 |
45 |
128,064 |
113,147 |
50 |
225,692 |
212,598 |
55 |
397,746 |
386,516 |
60 |
700,965 |
693,879 |
65 |
1,235,339 |
1,235,557 |
They ended up with the same amount, but Jack saved less. Imagine how much Jack would have he kept saving $ 2,000 a year after the first six years. Whoa! He would have been a millionaire a couple times over.
2. I don’ t make enough money. If you earn a paycheck, you earn enough to save. It doesn’ t have to be much. Start off small. Sock away 5 % of any income you make into a high yield savings account. You’ ll be amazed how little contributions can add up quickly. Gradually work your savings up to 15 % of your income. Whenever you get a windfall like Christmas gifts or a tax return, put half in the bank. Slowly, gradually, by saving money you’ ll find yourself with a small fortune.
3. I deserve a little luxury in my life. Many people sabotage their savings plans by taking the money and splurging on stuff they don’ t need. Usually the justification is they’ ve worked hard and deserve the splurge. I’ m battling this excuse in my life right now. I really want to buy a Macbook. I have the money for it and could easily go to the Apple Store and buy one. I justify the excuse by telling myself I’ ve earned it from the hard work I’ ve done and the sacrifices I’ ve made saving. But do I really want to lose $ 1,000 in savings for something I don’ t really need? No way.
Instead of looking at“ things” as luxuries, think of saving as a luxury. When you save, you’ re giving yourself the luxury of financial freedom. How nice would it be to not have to worry about money? Pretty dang awesome. OO
24 // COMPANY DRIVER // AUGUST 2013
OO 0813 edit. indd 24 7 / 8 / 13 11:51 AM