Prime Rate Credit

I know this is a little off the subject of credit, but it’s still very important nonetheless, and I really try to tell all my friends who have not started a retirement fund (especially those that have a good 401k account plan at work), that they are literally throwing future money down the drain. A CNN money article recently illustrated how much a different of ten years earlier savings could make in the end result and it was literally over 100,000 dollars for the person who would start saving at 22 vs. start saving at 32.

The principle of compound interest is a very powerful concept, especially when you are talking about timing of investments and socking money away. I’m so glad that I started when I was about 28 years old, but then again, I think of how much I missed out on because I didn’t start my 401k with the company I still work with when I first started with the company when I was 24 years old.

It makes me sick to think that I could have literally had so much more for myself and the security of my family had I started saving at an earlier age, but then again I’m thankful that I was able to start at 28, and saw the light then. People tend to think they cannot afford to have money taken out of their paycheck, but when they realize that the amount ends up being usually so minimal, and that after taxes take their portion of the pretax money, it really ends up being a pretty livable expense. Plus it’s a great tax benefit!