Who Wants to Be A Millionaire? The awesome power of compounding interest!
Quick! How much money did you put into savings last month? Did I just hear you groan? You are not alone. However, this is not the company you want to be in. The simplest way for you to become financially independent is to develop the habit of saving 10-20% of your income throughout your life time. If you are starting out in debt, begin by saving 1% of your income and living on the other 99%. Keep adding a percentage to your savings as you adjust. Don’t slack off. Within a year you will have learned to comfortably live on 80 to 90% of your income and saving the balance. Learn to live within your means.
I take pride in the fact that I have never had credit card debt ever. I paid my way through college, paid for my wedding, bought all my own cars from the time I was sixteen and all without credit card debt. I lived within my means. In college I couldn’t afford a food card from the school so I ate .20 per pack Raiman Noodles and got a job as a bartender to cover the “social” aspects of college. As I became more successful I allowed myself to get nicer things…but I could afford them. It’s a discipline just like anything else. My suggestion is to become aware of your current situation and then if need be make changes as quickly as you can. There is no point in beating yourself up if you’ve messed up. Acknowledge, take responsibility and move on is my philosophy when I realize I’ve made a mistake.
To show you the power of compounding interest check this out:
To be a millionaire by the time you reach age 65:
Age Amount set aside per year Years to save Amount at age 65
15 $2,000 7 $1,020,430
15 $2,000 50 $2,327,934
25 $2,259 40 $1,000,000
35 $6,079 30 $1,000,000
45 $17,459 20 $1,000,000
55 $62,745 10 $1,000,000
Pretty amazing when you see it in black and white, isn’t it?
Just a little something to consider!
Posted by joycebone 
joycebone