Why should I save when I'm young?
It’s true, retirement is far away. Think of it this way. Warren Buffett is worth over $60 billion. But do you know what he doesn’t have and you do? Time.
Making money takes a lot of time. Time is a huge asset that you have and Warren Buffet doesn’t. You need to take advantage of it. Scroll down and we'll explain.
Let us show you how powerful time is
Here’s an example using the S&P 500 (the S&P 500 is a group of the 500 largest American stocks). Sarah put $10,000 in the S&P 500 30 years ago. Joe put $50,000 into the S&P 500 10 years ago. Which person do you think ended up with more money?
The answer is Sarah. Sarah made $25,000 more than Joe even though Sarah invested signifigantly less money. It takes years for investments to grow and become more valuable.
Whatever you do, don't save $0!
Saving for retirement is hard to do when you’re young. But don’t save nothing.
Saving even small amounts is still very helpful. We recommend you talk to your parents, siblings, and cousins about this. Talking to family about what they did can help you get on the right track.
What about my student loans?
Student loans may be a huge concern you’re dealing with right now. But if you come up with a plan to pay back your student loans and be smart about it you can do both.
Head on over to our Student Loans page for more help on this topic.
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