effects your future. Spending money today means you willnot have it tomorrow and you will end up poorer for it. Ifyou were to buy a used car instead of new one, you couldsave lets say $10,000. If that $10,000 would be investedand allowed to grow you would end up with about $600thousand, as demonstrated above, by 65 if invested in aRoth IRA account.The money you spend today on a new car, this years model,will cost you $600,000 and the car has long since beenrecycled or may sit rusting on some lot. Every purchase youmake is important, not just a car. Purchases to keep upwith the Joneses like following fashion trends, weekly hairstyling or cuts, top of the line cloths for work whensomething less expensive will do, and so on. You don't needa new ring tone to show off to your friends. If instead themoney you saved can earn you interest with which you canreally show off to your friends at how your building wealthand they are not. Things don't last, investments do, andthey can grow to a small fortune.
The Later You Start The Harder It Gets To Build Wealth
It is true, the sooner you start the better, although it isnot altogether impossible if you have still some timebefore you retire. The older you are the harder it gets tobuild wealth. The time needed for compound growth to reallykick in is too short.If you wait until you’re 32 and invest $5,000 at 10% in aRoth IRA account, you would have about one million. This isstill a respectable amount it is not the two million if youhad started ten years earlier. At 42, you would onlyaccumulate about one third that amount or about $400thousand. By the time you are 50 you will end up with about$200 thousand by age 65.Social Security is not going provide a comfortableretirement, it is in jeopardy of collapsing altogether –the largest ponsi scheme ever at its worst (new investorspaying into a system that pays out to older investors). It