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