Why starting early matters
A lot of people come up with reasons to avoid savings or investing. There is a very wide range of excuses and there isn’t really a point to get into them. The benefits of starting to save as early in life as possible can be incredible. Once again this is a simple concept that goes right along with the concept of paying yourself first. Here are two benefits of starting to save early, first and most important is compounding interest and second is making saving or investing a habit.
When you make something a habit you are used to it, you embrace it (for the most part) and you always do it. When you start a new job or your first job with benefits, make sure you take the time to set up a 401k, 403b or similar retirement account. By doing this when you first start your job you will make it a habit, you will be used to the amount of money you get in your pay check each month or each week. Most people wait to set these accounts up until they start getting a match from their employer, when you wait its much harder to make that adjustment.
Compounding interesting is very simple concept that most people don’t get. The next post will focus on compounding interest and ilustrate why it makes sense to take advantage of it.
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