9 Awesome Benefits of Saving Early (Some You NEED To Know) | Wildchildretire

Saving early is one of THE BEST WAYs to achieve the life that you want.

In this post, we’ll describe 9 ways it can have a lasting effect on you and your family’s lives.

And if you take these benefits seriously, you can become a millionaire before the age of 37, just like I did. 😁

Let’s talk about saving early.

Importance of Saving Money Early

1. Bigger Retirement Savings

One of the benefits of saving sooner rather than later is that you will have a lot more money in your retirement account. This is important because it means that you will be able to live comfortably in retirement and not have to worry about money.

Also, having money in your retirement account will allow you to leave a legacy for your children or grandchildren.

So, the earlier you start saving for retirement, the bigger your nest egg will be.

(Interesting snippet: Not having enough money for retirement is one of the main reasons why people have a fear of spending money. So start saving now!)

2. Compound Interest

Compound interest is important because it allows you to earn interest on your principal, as well as on the interest that has already been earned. This can cause your savings to grow much more quickly than if you were simply earning interest on your principal alone.

For example, let’s say you have $100 in savings, and you earn 5% interest per year. After one year, you will have earned $5 in interest, for a total of $105. The next year, you will earn 5% interest on the $105, which comes to $5.25. So after two years, you will have earned a total of $10.25 in interest, for a total of $110.25.

And if you need a tool to help you get those expected returns, you would benefit from using Robinhood.

Robinhood is a super user-friendly app that allows beginners or experts to invest in individual stocks, mutual funds, and even ETFs.

As you see, compound interest can help your savings grow much more quickly than if you were simply earning interest on your principal alone. For this reason, it is important to start early so that you can take advantage of the power of compound interest.

3. Risk Tolerance Is Higher

Another major benefit of saving while you’re young is that you can have a higher risk tolerance when it comes to your investments. By starting to save early, you give yourself more time to weather any storms that might come along. This means that you can afford to take more risks with your investments, which could lead to higher rewards down the line.

Of course, there are no guarantees when it comes to investing, and you could lose money even if you take a measured approach. However, the potential rewards of taking risks are often worth it for those who are willing to accept the possibility of losses.

4. Financial Independence

Creating savings early is one of the smartest things you can do for your future. The sooner you start saving, the more time your money has to grow. And the more time your money has to grow, the greater chance you have of achieving financial independence.

So what is financial independence? Financial independence is when you have enough passive or semi-passive income to cover your primary, routine expenses. This means that you wouldn’t have to work a traditional 9-5 job in order to make ends meet.

There are a number of ways to achieve financial independence. Some people do it by investing in real estate or stocks. Others do it by starting their own businesses. And some people are even able to achieve financial independence by living a frugal lifestyle and saving a large percentage of their income.

No matter what method you use, the important thing is to start saving now. The sooner you start, the greater your chance of achieving financial independence and living the life of your dreams.

5. Kids Future Secured

One of the best things you can do to secure your kid’s future is to save early and often. By doing this, you’ll have the chance to save for things like their education and possible job opportunities. This is important because it can help them get ahead in life and be successful.

Additionally, it’s a good way to teach them the value of money and how to be responsible for it. If you start early, you’ll be giving your kid a great head start in life.

6. Aging Parents

Caring for aging parents can be a costly endeavor – both emotionally and financially. According to a recent AARP survey, four in ten midlife adults expect to provide financial support to their parents in the future.

If you save early, you can help ensure that you will be able to care for your aging parents without putting your own financial stability at risk.

7. More Time With Loved Ones

A lot of people choose to spend their money on things that they enjoy, and that’s perfectly understandable. However, if you want to be able to spend more time with your loved ones, it’s important to start saving up early.

If you can put away a little bit of money each month, you’ll be surprised how quickly it adds up. And then, when you have a family or other loved ones to take care of, you’ll be glad you did.

Plus, if you’re able to spend more time with your loved ones, you’ll be able to create even more memories together. So start saving now, and you’ll be able to enjoy your time with your loved ones even more in the future.

8. Find A Hobby or Passion

If you’re not quite sure what you want to do with your life, it can be helpful to save money early on. This will give you some breathing room to explore different options and find a hobby or passion that suits you. Not only will this make your life more enjoyable, but it can also improve your long-term financial prospects.

There are a lot of ways to go about finding a hobby or passion. You can start by thinking about things that interest you. What are you drawn to? What do you enjoy doing in your free time?

Once you have a general idea, you can start doing some research. There are many resources available online and in libraries that can help you learn more about different hobbies and passions.

PRO TIP: Skillshare.com is an awesome place to find a new hobby. It’s a place where you can learn new skills and hobbies and make money at the same time!

9. Vacations

One of the best ways to enjoy your retirement is to travel and see new places. If you start saving early, you will have more money available to take the vacations you have always dreamed of.

Think about all of the amazing places you have always wanted to see. With a little bit of planning and saving, you can make those dreams a reality. Start planning your dream vacations today and let the power of compound interest help you get there.

FAQ

How Much Should I Save In My 20s?

A good rule of thumb is to save 10-15% of your income. If you can swing it, 20% is even better. The earlier you open a savings account, the more time your money has to grow. So if you can, start putting money away in your 20s!

Is 30 Too Old To Start Saving?

There’s no definitive answer, as everyone’s personal finance situation is different. However, in general, it’s never too late to start saving for retirement, and the earlier you begin, the more time you have to let your money grow. If you’re 30 and just starting to save, don’t worry – you’re not behind. Just make sure to start as soon as possible and be diligent about it, and you’ll be on your way to a bright future.

How Much Should You Have Saved At 35?

Ideally, you should have saved enough money by age 35 to cover at least three times your annual salary. This will help ensure that you have enough money to cover your costs in retirement and handle any unexpected expenses that may come up.

If you have less money than you would like by age 35, don’t panic. You can still catch up by saving more each month, taking advantage of any employer matching programs that may be available, and using a financial advisor.

What Is Meant By Time Is Money?

In general, the phrase “time is money” means that time is a limited resource and therefore it has monetary value. In other words, time is something that you can spend or invest, just like money. This phrase is often used to encourage people to use their time wisely and not to waste it.

What Is An Employer Sponsored Retirement Plan?

An employer sponsored retirement account is a type of savings plan that is offered by an employer to their employees. These types of plans usually let your money grow tax-deferred, which means that the employee can save money on their income taxes now and pay taxes later when they withdraw the money from the account. These retirement accounts can be a great way for employees to save for their future.

Summary

The bottom line is that if you want to be financially free, be able to support your family, as well as enjoy what the world has to offer, it’s never too early or too late to start saving. But if you get an early start, the easier it will be to reach your financial goals. So do your future self a favor and start saving as soon as possible!

What are some steps you can take right now to get started?

Will you use Robinhood to start taking advantage of that compound interest?

Do you know of any other benefits?