Money Savings Decisions

Brigade Bookkeeping
October 18th, 2014
No Comments
Will I have enough for retirement? How decisions in your 20's and 30's, may cost you money later.
Will I have enough for retirement?

There are quite a few people I know who are turning the big 4-0! When I was a kid, I remember thinking that was old. Now that I’m an adult, I know that’s just halfway through life for most Americans.

Just last week, the Centers for Disease Control (CDC) announced life expectancy increased in 2012 to 78.8 years old – a record high. If you break it down, for females it’s 81.2 years and for males, it’s 76.4 years. That’s why this week I want to talk about how decisions in your 20’s and 30’s, may cost you money later.

What do I mean? Read on:

HOW MUCH YOU MAKE – How much money you make in your 20’s and 30’s could affect your bottom line and how much you wind up with in the future. For example, negotiating an extra $5K with pay increases every year, could have you pulling in half a million dollars more in income over 40 years. Business owners, remember this when you’re setting fees and billing clients.

COMPANY MATCH – Does the company you work for match in a 401(k)? Companies that offer 5% matches and profit sharing contributions could result in more than $1 million extra in a retirement account by the age of 55.

FRIVOLOUS SPENDING – That $700 pair of shoes or the $2,000 watch are the most amazing things you’ve ever seen, but buying them will put you in debt; what do you do? We all work hard to enjoy life and to afford things we otherwise couldn’t, but how many times have you bought something and worn it just once? We all have done this.  If you haven’t outgrown frivolous spending, then track your expenses. Once you do, you’ll realize all of those thousands of dollars could be put into a savings plan and could result in hundreds of thousands saved by the time you’re in your 50’s and 60’s.

INVEST/SAVE YOUR MONEY – During your 20’s and 30’s it’s important to start saving money. It’s also the time many people start investing in mutual funds and the stock market. Building a portfolio isn’t a bad thing, but make sure to double check for outrageous management fees. If they’re high, you might be better off investing in government bonds or a long-term bank CD account. Talk to a financial advisor about your options. I recommend Perry Greenfield of Wells Fargo Advisors in Miami. He can give you a comprehensive wealth management assessment. Contact him at or e-mail me and I will introduce you.

So whether you’re 20 or 70 already, making wise choices with your money is the bottom line to having more of it in the future. Have a productive work week everyone and remember to save, save, save for the future!

Leave a Reply

Your email address will not be published. Required fields are marked *