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

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.

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To High School Seniors In Their Last Semester

Senior year moves pretty fast; if you don't stop and look around once in a while, you could miss it.

Dammit, you made it. The final semester of your senior year. You’re at the top of the food chain of high school, and it feels so good. You’re probably praying this last semester flies by, that you get out of town as soon as possible.

At this point, you’re calling teachers by their first names, the entire staff knows you by name, and you’re walking around school standing tall, owning those hallways. You’re convinced you’re ready to leave and move on to the next chapter in your life.

You’ve already experienced your last football game, standing in the cold in the front row of the student section all season long, decked out in your school colors and cheering loud and proud. That is, until they lost, and you realized you will never have that experience again. Never again.

SEE ALSO: What I Wish I Knew As A Second-Semester High School Senior

You already had your last winter break. Preparing and celebrating the holidays with your family, ice skating and sledding with your best friends. Those quiet nights alone in your room watching Netflix, taking for granted your loved ones just a few rooms away. Never again.

If you’re an athlete, you may have already played in your last game or ran your last race. The crowd cheering, proudly wearing your school’s name across your chest, giving it your all. For some, it may be the end of your athletic career. Before you knew it, you were standing in an empty gym, staring up at the banners and thinking about the mark you left on your school, wondering where on earth the time went. Never again.

I’m telling you right now, you’re going to miss it all. Everything you’ve ever known. Those early mornings when you debate going to first hour because you really need those McDonald’s hash browns. The late nights driving home from practice, stopping for ice cream of course, ready for a late night of homework. Getting food on a whim with your friends. Endless fights with your siblings. Your favorite chips in the pantry. A fridge full of food. Coming home to and getting tackled by your dog. Driving around your hometown, passing the same sights you’ve seen every day for as long as you can remember. Hugs from your mom after a long day. Laughs with your dad. And that best friend of yours? You’re going to miss them more than anything. I’m telling you right now, nothing will ever be the same. Never again.

SEE ALSO: I'm The Girl That Enjoyed High School

Before you start packing your bags, slow down, take a deep breath, and look around. You’ve got it pretty good here. The end of your senior year can be the time of your life; it’s truly amazing. So go to the winter dance, go to Prom, spend Senior Skip Day with your classmates, go to every sporting event you can, while you still can. College is pretty great, but it’s the little things you’re gonna miss the most. Don’t take it for granted because soon, you’ll be standing in a packed gym in your cap and gown, wondering where the heck the time went. You’ve got a long, beautiful life ahead of you, full of joy but also full of challenges. You’re going to meet so many wonderful people, people who will treat you right and people who won’t.

So, take it all in. Be excited for the future and look forward to it, but be mindful of the present. You’ve got this.
Cover Image Credit: Hartford Courant

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5 Things I Don't Know How To Do But Should've Learned Years Ago, As Told By The Kardashians

In my opinion, there should be college classes completely based on mastering these topics.


There are many things that I don't know how to do yet. These, however, are things that I am now realizing are things I maybe should have learned a long time ago. Things that if I knew anything about them, it would improve my life exponentially. Hopefully some of you feel the same and we can learn together.

1. How to cook chicken

Seems easy, but this is deceivingly difficult. No one tells you what type of chicken to get, and there are so many options. Like, do you get chicken breast or chicken cutlet or chicken tenders? Which way is the best way to cook it? Pan fry, bake, deep fry, poach, steam, etc! And how do you make it not taste like paper? What, like, spices do you put on it? In my last year of college I have made it my duty to learn how to make every type of chicken.

2. How to work a dishwasher

So, I know how to put the plates and silverware in, obviously. And I always clean them off before because I never trust the dishwasher soap to get everything off. How would it? And where exactly does the little dishwasher soap go? No one tells you where the leetle hole is that the soap bar goes. There's like three different holes in the door thing, and how are you supposed to know which one the soap goes in? Just guess and hope for the best? That's what I do.

3. How to pay your taxes??? Literally how

No matter who I ask, young or old, no one understands anything about taxes. I have been working since I was 17 and year after year when I ask my parents for help filing my taxes, they agree begrudgingly while squinting at the paper pointing at the little boxes with a "I think it's that one." I have never and will never understand anything to do with taxes, period. I will leave this to the professionals.

4. How to do anything with insurance, ever

Once again, wtf? Do the companies make these things impossible to understand on purpose? Like, all I want is to get my birth control from CVS and be done. Is that so hard? Why do I have to switch it to Walgreens (to whom I am NOT brand loyal, to, by the way) and then check if they cover my insurance? And WTF is a copay? And there's something that you pay before you get a copay? All I'm gonna say is that my mom tried to explain it to me once and it went in one ear and out the other.

5. How to arrange a cheese board

This is something that I feel shows you have truly made it at an adult. You have people over to your house and just throw together a lovely charcuterie board for your guests like its nothing. But what do you buy for it? Cheese, obviously. Meats? What types of cheese and meat? Grapes? Nuts? And how do you arrange it to look all pretty? Mark my words: when I can make a yummy and visually appealing cheese board, I've made it.

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