Say, for example, you are 35 years old and you are just starting to invest. At this point, you can afford to invest $ 200 a month, ներդր your investments earn an average annual return of 7%. In that case, you would save about $ 227,000 under the age of 65.
Now, let’s say that instead of investing at the age of 35, you are waiting until the age of 45. However, at that age you can afford to invest $ 400 a month while earning an average annual income of 7%. Under this scenario, you would have about $ 197,000 at age 65. Even if you invest twice as much each month, your savings will not reach what you would have had if you had started saving money earlier.
2. Put your money behind the stock
The stock market is known for its volatility, and putting your life savings on stocks can seem risky. However, stocks will help your money grow much faster than more conservative investments.
Bonds, CDs և High-yield savings accounts may be less volatile than stocks, but they also have significantly lower yields. Bonds can only yield about 4% or 5% per annum, and even the best high-yield savings accounts pay about 1% per annum. This is unlikely to keep pace with inflation, which means your money may lose value on your savings account over time.
The: S&P 500:On the other hand, since its inception, it has received an average annual yield of 10%. Although the stock market has its ups and downs, if you leave your money invested for decades, you will probably earn much more than if you invested more conservatively.