Start investing now, because an early start can make all the difference. In general, every six years you wait doubles the required monthly savings to reach the same level of retirement income. If you contributed some amount each month for the next nine years, and then nothing afterwards, or if you contributed nothing for the first nine years, then contributed the same amount each month for the next 41 years, you would have about the same amount. Compounding is a beautiful thing. The right course of action depends on your current situation, your future goals, and your personality. If I do not take a closer look at these, and make them explicit, then I might be headed in the wrong direction.
Getting My Financial House in Order
What is my current situation, how healthy am I financially? What is my net worth right now, my monthly income? What are my expenses and where could they be reduced? How much debt am I carrying and at what rate of interest? How much am I saving, how am I investing it? I need to set goals for myself, such as: What are my financial goals? How much will I need to achieve them and am I on the right track?
Risk Tolerance: How much risk am I willing and able to accept in pursuit of my objectives? The appropriate level of risk is determined by my personality, age, job security, health, net worth, amount of cash I have to cover emergencies, and the length of my investing horizon.
Even though investing may be more fun than personal finance, it makes more sense to get started on them in the reverse order. If you don't know where the money goes each month, you should be thinking about investing yet. Tracking your spending habits is the first step toward improving them.
If you're carrying debt at a high rate of interest,...