Do you know you can start saving money and retire comfortably without having to worry about money?
Yes, it’s possible to have money for retirement without having to worry about money if you’ll do three things:
- Start saving a dime of every dollar, you earn
- Invest the interest on your savings frequently.
- Seek expert advice before you invest your money
I came across this simple yet powerful advice when I read success through a positive mental attitude by W. Clement Stone and Napoleon Hill
You’ll think this advice is simple enough that anyone can do it. Well not really
The truth is that most working American families are not saving for retirement.
A recent study by the United States Census Bureau on the average savings of American families found:
• Average savings account balance for working American families is $3400.
• 40% of working American families are not saving for retirement
• 25% of working American families have no savings at all for retirement
You can see from above that many working adults are not saving money for retirement.
But if you’ll follow the wise advise of saving, investing and seeking help from a financial expert -you’ll never be a part of the census bureau statistics
Why are most working adults not making plans for retirement?
The answer may be for two reasons.
The first one is that most Wall Street firms often advise the average investors on products that are not towards savings.
You’ll hardly find advise on saving money because most of these firms earn income from selling mutual funds and stocks.
The second reason most people lack plans for retiring is due to poor financial skills.
Most families don’t even know how to balance their checking account let alone know how to invest money
Most people learn about investing in stocks and bonds watching Bloomberg news, CNBC and Fox business.
The problem with learning about investing from watching TV is that most of what you hear on TV is heavily biased.
This is why you must ignore most of what you hear on CNBC, fox news and Bloomberg TV channels about investing and wealth creation.
What can you achieve with your salary when you save a dime of every dollar you earn? The answer: you can save enough money
Here is why…
Let’s assume you decide to start saving money for retirement with an initial sum of $1000.
If you start saving 10 cents of every dollar you earn for the next 20 years, assuming you earn $50000 yearly.
This means you’ll be saving $5000 annually.
Now assuming you earn 5 percent interest on your money. At the end of 20 years, you will have saved $301,326
As you can see by saving regularly, compound interest will allow you to save enough money for retirement.
You can also accelerate the rate at which your money grows by investing the interest you earn from your savings.
For example, you can invest your money in stocks that pay dividends. These are stocks of companies that are bellwethers in their industries.
Also called blue chip companies, these companies are likely to weather adverse economic conditions and still operate profitably.
And they have a record of consistently paying dividends to its shareholders.
Some of these companies also allow you to reinvest your dividends to buy more of their shares.
Unilever is an example of a blue chip company that has a track record of paying dividends to its shareholders for the last 20 years. They also have a dividend reinvestment program.
Another important thing you need to do is: you should seek expert advice before investing your savings
Why? In order to earn a decent return on your net investible income, you need an investment expert.
An investment expert is an individual who is competent at investing in real estate, stocks, business and Internet marketing
They are different from Wall Street certified financial advisers and your stockbroker.
Most investment experts are active investors and have a track record of making money with their own money.
How do you start taking action on this powerful advice?
The first step you must take is to open two separate accounts-an investment account and a savings account
Once you have opened these accounts make a pledge to start saving a portion of every dollar you earn every month beginning today.
When you form the habit of saving a portion of every dollar you earn, learn how to invest the interest from your savings –and seek expert advice before you invest your money.
You are more likely to feel confident about retiring comfortably from your job than the average working adult who has made no plans for retirement- because you’ll have saved enough money.
You can start today. Start now to save, invest and seek help from financial experts when you are investing.