Although it's never too late to begin planning for your financial security, getting an early start can give you a real boost toward reaching your financial goals. If you want to keep the price of a comfortable retirement, a house, or a college education within your reach, the question is, can you afford to wait?
The key to saving is to think of it as another basic expense in your budget. Don't look for savings in what's left over after spending; often there isn't any. Instead, make saving a habit. Treat your savings deposits like your rent payments, and put aside a set amount each month (or even each week). Over time, even small amounts can make a difference.
In addition, the longer you are invested, the more you can potentially benefit from the power of compounding. Compounding occurs when any earnings from your investments are reinvested and potentially produce more earnings. It's like a snowball effect; each year's gains can build on those of the past, potentially increasing the overall growth of your investment.
GE 91145 (01/2016)