If you invest $ 1 at the age of 20, you will earn more than putting $ 10 aside at the age of 50, writes a popular US financial blog. But is it really worth saving in the mid 20’s?
In fact, if we can put a little aside in our 20s, it will reach nearly ten times in 30 years. In other words, our investment can be up to ten times higher when calculating with inflation (in this article we calculated 2% inflation and 8% yield). But maybe it’s not such a surprise, the question is, is really the waist of our 20s the best time to save?
It depends on what we set aside
Saving is good, but not always the best decision. It is not worth putting aside as much, as what we consider important changes over time. Just imagine how much fun a beer can bring to a 20-year-old, while an expensive Scottish whiskey can’t fake a smile at the age of 50. So, it is worthwhile to spend your money in the present whenever we can do more with a smaller amount.
But it is still worthwhile to bring forward consumption, even from the future. It is a matter of our individual choice. Buying a plasma TV on a loan and watching football breeze on it (though no one borrows for that purpose) can mean more than bringing the device out of business with your saved money later without credit.
Everyone in your life has an example where you can’t wait and want to buy the object of your desires as soon as possible. It’s easier to imagine this by buying a home that can be a concrete return on investment and in many cases a better idea than putting your money aside.
So putting it aside in our 20s is definitely not a bad idea, as it can really swell a lot of money, but it has to be taken into account that this is also the time when we are probably looking for the least. So it is even harder to set it aside, so you can save that $ 1 just by having a lot of trouble, while at the age of 50 you don’t have to worry about setting aside $ 10.
How to put it aside at a young age?
If you already have a small emergency reserve and want to set aside more, look for savings that pay much more than average deposit rates. If you want to buy an apartment in the near future, choose the apartment savings . If you want to think about your retirement as well, choose the solutions that involve state support.
Think about how much money you can put aside as long-term savings are hard to come by. If you need the money before maturity, you may lose interest or even some of your deposits. In no way do you invest in such savings until you are sure of your financial background.