If you’re 35, you’re probably like “Hey, I’ve got a job, and I’m making good money, but I know I could be doing more.” Unfortunately, you’ve lost 10 years of time when it comes to investing. We all know that with compound interest, time is the most valuable thing. So, you’re a little bit older and you’re thinking “What do I do now?”
First things first, start putting away $450 a month.
You can invest that in anything you want. But if you look at the historical returns of the S&P 500, it’s been averaging around a 10% return. I use that one because Warren Buffett, the greatest investor of all time, talks about how most people can’t beat the S&P 500. S&P 500 is always updating and improving. Let’s be real, if it’s good enough for the Oracle of Omaha, it’s good enough for you.
Now, I know I said you can invest in anything you want, but this isn’t financial advice. You should still talk to a financial advisor.
If you’re 35, you’re still in a great spot. You’ve got more time than if you were 25, but you’ve lost 10 years, so now you have to make it up. If you put away $450 a month, and you get a bonus or a raise and you can put a little bit more away, then you’re golden.
The beautiful thing about automation is that you’re always buying the market. If the market is down, you don’t care because you’re always buying the same amount. So, get that set up, create that automation, and become a millionaire.
Power of Compound Interest
Why should you start investing and thinking about your financial future now? For one, compound interest.
The earlier you start investing, the more time your money has to grow. Not to mention, the earlier you start, the less you have to save each month to reach your goals.
Another reason to start investing now is to have a cushion for unexpected expenses or life events. Nobody knows what the future holds. Having a solid investment portfolio can give you peace of mind in case of job loss or unexpected medical bills.
Reach your Financial Goals Sooner
Investing now can also help you reach your retirement goals sooner. The earlier you start, the more time you have to save, and the more time your money has to grow. This means that you could potentially retire earlier or with more money than if you had waited.
So if you’re 35 and you’re thinking “Damn, I’ve lost 10 years,” don’t worry. You’re still in a great spot to become a millionaire by the time you retire. Start putting away $450 a month, invest in the S&P 500, and create that automation.
Remember, time is the most valuable thing when it comes to compound interest. The earlier you start, the better. Not only will you reach your financial goals sooner, but you’ll also have a cushion for unexpected expenses and the ability to retire earlier.
So don’t wait, start investing now and become a millionaire.
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