I know you are probably thinking you are too young or too cool to be saving for retirement, but let me tell you something. You do not want to reach that age when your mind and body let you know that you can no longer work and have no money saved up for your living expenses.
1. You will need the money later.
Imagine you have just retired. Congrats, but what about your rent/mortgage/auto payments, your utility bill(s), your credit card debt, your medical expenses, food in your fridge, emergencies, etc… Do you want to be that grandparent who works the cash register at the grocery store to survive and pay bills instead of enjoying not having to go to work?
2. Your money will grow over time.
Let's say you deposit and leave $1000 into a savings account for a year with 6% simple interest. At the end of the year, you will earn $60 in interest, and end up with $1060. You can even have more money with compound interest which is essentially interest on interest. The more the interest is compound, the more money you make.
3. You might be able to enjoy your retirement money tax free.
Let’s be honest, who genuinely loves paying taxes? Some retirement accounts offer you the option to pay taxes now so that you won’t have to worry about it later when you withdraw your money. Those accounts are called ROTH IRA.
I hope this post motivated some of you to sacrifice a little today and benefit later down the road :)
Live Life Fully,
France Mkb