The Deep $acrifice
The younger you do this the better of you are. Let’s say that you are 25 and manage to save $5,000 a year. Now that might sounds like its a lot but try to do it in small portions it’s achievable by sacrificing $416 month. Try to run the same strategy for 5 years, now I know this is really hard but the outcome will be amazing.
There are multiple ways to do that, let’s use the part time job scenario, even if you are making $97.00 a week in that job, the goal is to save, if you stick to the plan that goal is achievable. I understand free time will be limited, there will be more time later for concerts and other stuff. Just keep reminding yourself that’s only a 5 years commitment.
This is the kind of commitment you need because it will give you a huge step towards your retirement. 25 year-olds do not think about retirement, I didn’t think about it until I turned 30 so that’s a good head start if parents can start it or help their kids achieve this it will be very beneficial. Now after 5 years saving of $5,000 which give you $25,000 invest it in an index funds more precisely S&P 500 Index Fund and ignore it until you are 65 a saving of 40 years.
Now think about any other investments that pay out could be if you earn a 7 percent annual return, which is $1750 annual interest × 40 years will have over $70,000 upon retirement plus the initial $25,000 you invested. As long you don’t touch that money and let it grow and compound interest grows and keep growing
Always remember to retire comfortably you’ll need multiple sources of income let that one be one of them.