Yes — You Really Should be Saving for Retirement in Your 20s

Yes — You Really Should be Saving for Retirement in Your 20s

You Have Nothing But Time - To Accrue Interest
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Your 20s are a huge time of change. Not only are you leaving academia behind for the real world, but you’re renting and buying properties, traveling, moving and maybe even getting married.

As you focus on the major milestones that lie directly ahead, you might lose focus on the ones way down the line. One huge accomplishment in your life will be retirement, and while it may seem like a faraway finish line, it’s one you should start thinking about now — yes, now.

Here are three huge reasons why saving in your 20s will pay off in dividends — quite literally — when it’s time to retire. We promise, you’ll be glad you started now.

1. You Have Nothing but Time — to Accrue Interest

When you start putting money away in your 20s, it will remain untouched on your end, but it won’t remain stagnant in value. That’s because it will accrue interest each year, adding more and more value to the initial amount you saved.

Imagine you started out with a savings of $1,000, to which your bank will apply a 4 percent interest rate. After one year, the amount in your account will be $1,040. It may not seem like a lot of growth, but your interest rate will continue to apply to the growing amount of funds in your account. So, at the end of the second year, you’ll have $1,081.60, 4 percent interest of your original investment, plus interest.

This growth could be even larger if you invest your money outside of your bank. And, if you do so in your 20s, you’ll give your investment even more time to grow and earn tens or hundreds of thousands of dollars in interest.

2. Your Efforts Mean More When You Make Them Sooner

You might be looking at your list of expenses and thinking, “There’s no way I can save hundreds of dollars each month when I have this much to pay for.” Between rent, student loans, gas for your car and everything in between, it might seem smart to put off saving until you’ve got these expenses under control.

But even a small amount you set aside each month in your 20s is worth so much more than larger amounts you might save later on. For example, if you save $100 a month for 40 years with a 12 percent interest rate, you would retire with almost $1.2 million in the bank. Someone saving $1,000 a month for 10 years, on the other hand, would have slightly more than one-sixth of that amount, around $230,000.

With that much padding in your account, you’ll be able to ensure you lead a comfortable life in retirement. Aside from housing in a development tailored to retired residents, you could travel, take care of your health and not worry about where the money was coming from.

3. You Can Make Even More Free Money



In a way, interest is free money. But starting to save in your 20s means you can take advantage of workplace benefits that are designed to build your retirement fund — benefits many 20-somethings don’t use to their advantage.

The best example of this is a 401K matching program. Not every employer offers this benefit, but they’re an incredible way to build and grow your retirement fund. That’s because your employer will literally match the amount of money you put into your account each month for free. And, one day, when you retire, you’ll have access to all that money — plus interest.

All this may be hard to envision now as you’re just entering into bona fide adulthood. But saving for retirement now is smart and will reap you huge rewards. Like we said before, we promise you’ll be glad you started early — all you have left to do now is save.

Cover Image Credit: https://www.pexels.com/photo/blur-cash-close-up-dollars-545065/

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Read This For The Moments In College You Just Want To Give Up

You got this kid.

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Your stress is real. Your stress is valid. There is no reason to feel guilty for feeling overwhelmed when you know everyone else is just as overwhelmed. You feeling overwhelmed and stressed is just as valid.

Yes, it may seem like assignments are never-ending. It may seem like you cannot get all your poop in a bucket. It may seem like you do not have this. But you do.

Because you are strong and you have made it this far. It does not matter if you are in the first weeks of your classes or in the last weeks. You made it this far and you should be proud of yourself for all the work you have done.

Finances may be tight, but know it won't be this way for long. You have a community around you who know finances like the back of your hand and know how to help you make the right money moves. It is okay to ask for help. It is okay to need help. Just breathe, and reach out.

Grades may not be where you want them to be. However, look at the points you have earned and be proud that you have earned points. Look at your future assignments and plan accordingly and be prepared to celebrate your future success.

Take the time to reach out to your professors, even if they seem unapproachable, take a chance. 9 times out of 10 they will be more than happy to assist you and give guidance on how to be successful in their classes. Make sure to utilize your resources your school provides as well (tutoring, academic help center, librarians, friends in your courses, IA's/TA's). It is okay to ask for help. It is okay to need help.

Take a deep breath in. Breathe in for ten seconds and hold your breath. Let it out slowly and know that you are human. You are a human created in the image of our wonderful maker who knows your heart, knows your struggles, knows your situation and knows your worries. And is ready to have you lean into him for rest, peace, and wisdom. All you have to do is ask for his will to be done.

You are smart, no matter what your GPA says. You are qualified to be here. You have the right to your education. You have the power to change your situation. There is always a way out or a way to fix the issue or issues at hand. It simply just is picking up the phone and calling that person for help. It is simply emailing your counselor asking for resources. It is simply talking to that scary professor, who after you speak with, really isn't that scary.

Take a deep breath in. Breathe in for ten seconds and hold your breath. Let it out slowly and know that you are human. Know that you are wanted, you are valued, and you feeling this way is okay. And there is someone out there who wants to hear about your worries and wants to help you.

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5 Bright Red Flags You're Still Stuck In High School, Mentally And Emotionally

High school can be some of the greatest moments of our lives. But, needless to say, it should NOT be the best four years of your life.

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The day of my high school graduation was truly one of the most memorable experiences of my life. High school itself, on the other hand... not so much. Personally, I felt very trapped in high school. I didn't particularly enjoy the people I was surrounded by (especially by the time I was a senior). So, when I finally graduated, I was immediately ready to move on. I miss some of the memories, for sure, but I can't sit here and lie and tell you I miss high school. Because I definitely do not.

Unfortunately, I've noticed a lot of the people I went to school with can't say the same. A lot of people haven't been able to move on. They're stuck in this web of memories they miss far too much, and they're too focused on the past to move on to a better future.

Here are five indicators you simply haven't gotten out of your high school mindset just yet.

1. You still hang out with the exact same friend group... and that's it

Don't take this the wrong way. It is absolutely OK to remain close to friends from high school. Some people really just have a solid friend group that will always have their backs no matter what. The issue, in my opinion, is a reluctance to branch out. You get too caught up in this seemingly stable friend group and refuse to meet new people or incorporate new friends into your life. My life wouldn't be the same if I hadn't met the people I did in college. In fact, my life would be shit if I ONLY talked to the people I went to high school with. Again, everyone's experiences are different, and sometimes the friends you make in high school may be the best people to keep around in your life, so don't take what I'm saying the wrong way.

But also, you'd be surprised at how meeting new people will really show you what being a good friend is. And that could mean you haven't been hanging around the right people after all. Just some food for thought.

2. You don't shut up about your high school

I feel like this one is self-explanatory. I reminisce on my high school memories all the time, and that's mostly with the friends I keep in touch with from high school. However, don't make it your only topic of conversation. Move on with your life. Stop dwelling on the past, and make new memories you can reflect upon. Those memories will never fade - don't make them all that you have to value.

3. You still publicize your high school accomplishments/proud moments

We get it. You were the star quarterback of your football team. You were a lead in a musical that one time. You threw one of the best parties that one summer. All of these things are great to be proud of, but don't let it all that you are. Don't let your high school memories define your identity. There's so much more in life than what you accomplished within a high school setting. I'm not saying to not be proud of those things. I'm saying strive for even bigger and better things that you can take pride in.

4. You visit way too often (or have an urge to)

It's not a bad thing to go back every once in a while and support a club/organization or visit some former teachers. BUT, you should not be back there every single week. You should not WANT to be there all the time seeing the same people over and over again. Please get a job. Or go to college. Or do something other than visiting your old high school.

5. You peaked in high school

Yeah, this is unfortunate for some. You were super popular and had all these amazing "friends" and EVERYONE knew your name, but now what? What is there left now? I feel as though some people get so caught up in high school publicity and their self-image, they lose touch of reality and realize it's all short-lived. These people don't think about life beyond graduation, and as soon as they graduate, they're nothing now. Just an average individual that is a part of the U.S. demographic, just like the rest of us.

* * *

High school can be some of the greatest moments of our lives. It is a critical time in our lives, actually, because of the formative foundation it provides for us. But, needless to say, it should NOT be the best four years of your life. There's way more to look forward to. I can promise you that.

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