Audio Version: Let Me Hear It!
Millennials (or anyone who knows a millennial), listen up! Recent studies have shown that social media is driving you to spend more than even you expect as a way to “keep up.” We think this warrants a mash-up of a couple favorites from our archives…
If your newsfeed full of dream vacations, designer handbags, and professionally contoured cheekbones has you feeling like your life is inadequate, we would like to point out that no one ever posts their checking account balances, 401(k) contributions, or credit card statements. If you would like to live a comfortable life, free from financial worries, and, oh, not work forever, instead of comparing your financial health to misleading overshares, use our simple, black-and-white, emoji and filter-free chart to see if your savings are on track. Tally up the amounts in your savings account, retirement plans, IRAs, and anywhere else you might be stashing money.
| Retirement Savings by Age Checkpoints | |
|
Age |
Savings Target (multiply this number by your current before-tax income) |
| 30 | 1x |
| 35 | 2x |
Not on track? If you think it’s hard to save, next time you rush to the local coffee shop for your caffeine fix, remember that the power of compounding makes a big difference. Consider this: the daily $3.65 cost of a medium-sized latte will run you over $1,300 per year. And, we’re not talking fancy drinks here, just coffee and milk (and just one a day)! If, instead, you redirected the $111 a month toward savings, assuming a 5% rate of return, the accumulation potential is major. Over a 15-year timeframe, this savings could create close to a $30,000 nest egg and near $100,000 after 30 years!
Remember that if you start saving early a little bit will go a long way. Time is on your side and now is the time. So, save early and save often!
