Build Your Nestegg - Start Very Early in Life - Economic Independance
Posted 6/9/2008 @ 6:45:39 pm by mywetplanet.com
Americans of all ages ..... Spending exceeds Income .... most of us know all too well that statement applies to nearly everyone today. At the end of the 1st quarter of 2008, Americans had accumulated nearly $2.5 TRILLION in revolving debt alone!
Having to face tens of thousands of dollars in credit card debt, Americans are increasingly forced to pay for gasoline, groceries, and other basic necessities with credit cards because the cost for these items is simply too great for their budgets. What advice would we have for our children, given our experiences with debt?
ADVICE: "Begin to save and invest your income wisely at the earliest age possible!" In our society, there are plenty of examples of both single and married couples doing this very thing! It takes a tremendous amount of DISCIPLINE.
Recently, an article in an investment magazine wrote of a young married couple who, with one child and a $200,000 mortgage, are living this plan and have structured their daily lives around wise investments and minimizing their credit debt to what can be paid off monthly. It can be done, ladies and gentlemen!!
In this example, the couple began to track their spending habits before they were married. Each were well aware of the other's budgets and how those budgets were kept on coarse. They paid cash for their vehicles. They invested double-digit portions of their income into 401K plans with their employers. They immediately started a Roth IRA and contributed to it monthly. By the time they both reach retirement (age 62), they will have accumulated in excess of $3 million!
There is more to this story. Spending on eating out is kept to an absolute minimum. Travel for vacations is held in check. They spend time at home with friends and family, who have provided a sound support system for their lifestyles.
I tell my children the same thing. Start a well disciplined lifestyle of saving wisely and early! I think that the dividends will pay for themselves!
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