The Case for Saving as Early As Possible, Only $30K Needed to Get to $1 Million

Written by Lawrence Gonzalez

Mega Wealth secrets for FREE. Investing early = MEGA difference. With just $30k, or about $3k annually for 10 years invest at the historic average rate of growth; you can be rich too.

Waiting until your 30s, 40s, and 50s will cost you more. Waiting until you are in your 60s is a death sentence. Savvy investors understand the benefits of investing early and taking advantage of the potential gains from compound interest. The entire Financial Independence and Retire Early (FIRE) movement is based on this principal.

It boils down to Compounding interest and mathematics. Investors made upward from 20%-30% annually during the Obama years. For simplicity, if an investment of $100k could have turned into $120k. When it comes to investing, you’re trying to grow your money for the future.

If you don't have a plan, check out "You know What That's a Great Plan..."

“With investing the world makes it more complicated than it really should be,” Hogan says. “All you’re doing is saving money for your dreams and you’re putting money away so you have it later. If we don’t invest, we won’t have anything to spend later on.”

Share. Inspire. And Discuss. Because no good friend lets another friend go broke. Break the poverty cycle.

You can do whatever you want with your money. You worked for it. You earned it. However, if you look back at that W2 and can't remember where the money went; you might want to rethink the strategy. Make the most of your dollars or not, the choices are endless.

Lawrence, what if you die before then? Answer, "leave it for your family".

Reverse question, "Well person, what if you live until 88?"

Saving at 20+

"Start saving early, when time and compounding interest are working in your favor. That’s because whatever you put away at 21 is going to grow exponentially. And the sooner you begin, the more time you’re giving it to grow.Put simply, saving early is the smartest money “hack” you can do in your life.

Make it hurt early and you won't notice the pinch later. At the very least you will have the $1M for retirement with less monthly burden with any other decade. Beats paying $800 in your 40s.

Saving at 30+

In your 20s, funding your 401(k) might have sounded like a good goal … for your 30s. Now that your 30s are here, you may be nervously noticing the countless articles on the virtues of investing in your 20s. Arielle O'Shea, January 2019

Waiting to invest in your 30s vs 20s is an increase 137%. If you don't think you have $150 per month in your 20s; do you think you can cough up the extra $190 per month. That's $4,080 per year for 37 years. That's a #TravelNoire feature every year. Ok so you put it off til the 40s...

Saving at 40+

Waiting to invest in your 40s vs 20s is an increase 440%.

If you don't think you have $150 per month in your 20s; do you think you can cough up $801 per month. That's $9,600 per year for 27 years.

40s are rough, deep into the career, scope creep, mortgage, parent's retirement, and kids... I can see why people park their cars and stay in the driveway.

Saving at 50+

This is where people make the worst mistakes with money.

Desperation is a gateway to scams, quick fixes, and terrible last minute ideas. Insurance, Credit cards, Housing, personal loans, business ventures, and even taking money from the 401k or the kids' college savings.

I've seen people take out the equity on their homes just to stay afloat for a little longer. This is when you start saying "I wish I saved and invested early". 

Money Stress Zone

Nearly 50% of households have nothing saved for retirement, according to the Economic Policy Institute. Households between ages 50 and 55 have more -- the median retirement account hovers somewhere near $8,000. For households between ages 56 and 61, it's over twice that, at $17,000.

Saving at 60+

Well, the game has wrapped up. Count the chips and the blessings. It isn't all doom and gloom. You will simply have to adjust.

Great family dynamics mean you can still offer your kids, a rent-free location so they can save up. They can pay the property taxes. You can also assist with daycare cost. You live you learn and you get golden.

The game can still pan out with pensions, social security, and etc... Just laugh at the young folks blowing their money while missing out that social security is depleting. Here's a nifty article on how to prepare as a family, the Plan.

The Wrap Up

Here's a breakdown of the mean and median retirement savings of U.S. families at every age (where do you fall?):

• Mean retirement savings of families between 32 and 37: $31,644
• Median retirement savings of families between 32 and 37: $480
• Mean retirement savings of families between 38 and 43: $67,270
• Median retirement savings of families between 38 and 43: $4,200
• Mean retirement savings of families between 44 and 49: $81,347
• Median retirement savings of families between 44 and 49: $6,200
• Mean retirement savings of families between 50 and 55: $124,831
• Median retirement savings of families between 50 and 55: $8,000
• Mean retirement savings of families between 56 and 61: $163,577
• Median retirement savings of families between 56 and 61: $17,000

Bonus (for those who read all the way to the end) - You can save even more with this strategy. Just $30k transforms into a clean $1 Million. How Sway?

For even more content, stay connected with my Linktr.ee/GQ_accountant. As always, share, like and definitely begin having the conversation about money before it is too late.