I am 24 years old, live with my mom and pay the rent – I think it will cost me মিল 2 million to retire. How do I save so much?

I hope you can help me get an idea of ​​how much I have to earn monthly to save enough money for retirement.

I am 24 years old, I only work part time and live with my mom. Rent is about 6 625, my monthly expenses are 500 500, groceries are 300 300, and I save 200 200 a month. We share our costs.

Since I am new to the workshop I do not have enough experience to apply for a high paying job in the range of $ 80,000 or more, but I look forward to reaching that point in the near future.

How much will I need to retire on a বা 4,000 monthly budget, assuming prices won’t rise in the next few decades? And how much do I need to save monthly?

I’m doing some calculations and according to my calculations it would take me 2 2 to retire at the age of 65 Million Or to live comfortably. Do you really need so much or is my calculation wrong? And is it possible to save so much, even with a well-paying job?

Views: ‘I’m not a hedonist’ but I want to build our next home for leisure, my wife says no. We saved 3 million. What should I do?

Dear reader,

I’m so glad you’re already thinking about retirement, especially since you’re only 24 years old and you have a few decades left. This focus will definitely help you in the long run, so congratulations!

I’m going to start by telling you something that might surprise you, or maybe even annoy you: the amount of money you’re saving right now – right now – isn’t as important as the act of saving yourself. And you can’t achieve that retirement goal just by saving – investing that money will actually grow through the power of compound interest. I will get it in a moment.

Jordan Benold, a certified financial planner at Benold Financial Planning, said: “The key is not to get in the weeds with numbers at age 24.” Plans change, especially when you’re in your early 20’s and have many years left until you retire. The keys to a comfortable retirement in the future will depend on your ability to build healthy savings and investment habits, increase your savings as you can afford it and be debt free (among the reasons একটি a mortgage is debt, but if you can afford to pay, it’s bad not n).

Also, life happens and sometimes you may have to take out a loan or consumer debt – just be aware of your decision, weigh all your options and consult a financial professional if necessary.

Many financial advisors recommend spending 10-15% on income savings, but this is not always possible. Especially at your age, start with what you can. “Of course, quantity can and does vary over time, but starting with পরিকল্পনা 20 a month with a plan to go from $ 50 a month to $ 50 a month and then go to $ 100 a month in a relatively short time will make a huge difference in your case. Ability to reach out, ”said Robert Gilland, Managing Director and Senior Resource Advisor at Concentration Wealth Management. “Your earnings may change over time, but you can’t go back and change what you did with money in the past and it starts with the compound interest law.”

See the MarketWatch column “Leisure Hacks” For effective advice on your own leisure savings journey

Compound interest is a magical thing. At its core, it’s just your money growing with interest and return on investment, and then that amount is growing on its own, month after month. When you put money away every month, whenever you remember or once or twice a year, this tool becomes significantly more powerful because there is more money to grow on your own.

Gilliland gave an example: if you want to start with $ 50 a month for two years, $ 100 a month for two years, $ 150 a month until retirement, you will save around $ 72,000 in that period. Assuming a 9% compounding growth rate, you’re looking at 65 614,000 at age 65. This is about 7.5 times more than the actual amount you saved during that time.

If you can double this figure now and anytime between retirement, think about what it could be.

All of these calculations, at least at the moment, are entirely speculative. With 41 years to go, we’re not sure what inflation and investment return rates will be, if you actually want to retire from 65 (or sooner or later) or what your income needs will actually be.

“Of course, no one has the crystal ball and it depends on your level of risk and what the market will do in the next one year,” said Tess Zigo, a certified financial planner and partner at Emerge Wealth Strategies.

Lots of leisure calculators are available, and they will all give you different amounts based on different estimates – not just inflation and return on investment, tax rates, longevity and much more.

These calculations, no matter how rough, show you the power of investment. A bank account will not give you the same kind of returns as an investment portfolio would. You need to be aware of what you are investing in, though. For anyone just starting out, you might want to consult with a financial planner who can evaluate your goals, time horizons, and risk tolerance, or if you’re using an online investment platform like Betterment, the program will create a portfolio for you that variables You input.

Here is some more information on how to choose an investment for your leisure portfolio.

Remember, there may be other sources of income for you when you retire. Take Social Security, for example, which will reduce your withdrawal from your nest eggs, Zigo said. It is too early for you to have an estimated monthly benefit in retirement for Social Security Administration, but you should still create an account at so that you can verify that your work history is correct and check once each time.

You can also finish a job that pays a pension (they’re not as popular in the private sector as they used to be, but they’re still around). Or you can do a side job in leisure, which will bring extra cash flow and late delivery from your leisure savings. If you are married, your wife’s savings will help you both.

The bottom line is that numbers, for the time being, are not as important as saving habits, financial literacy, as well as some patience and hard work. You’ve already started, which is probably one of the hardest aspects of the leisure safety journey. And your lifestyle and expenses and income – everything – are going to change again and again between now and retirement.

You can do more now to help yourself in the future.

One: Learn the different types of investment vehicles available to you. For example, if your current employer does not have an employer-sponsored retirement account, such as 401 (k), you can use the earnings to fund a separate retirement account. If and when you get a job that offers 401 (k) or something similar, you can also contribute to it – they sometimes bring benefits like employer match and those accounts have a higher contribution limit than the IRA.

There are two types of IRAs to keep in mind: a traditional therapeutic, which is financed with pretax dollars, and a chariot IRA, where you pay taxes when you put money in the account and then deduct the money after the age of 59. Roth is a great tool for young investors in low tax bonds, because when they can be in high tax bonds they will avoid paying more tax on distribution.

What else can you do now to support your future leisure security, Zigo advises focusing on your skill set and finding a job “You gain skills and enjoy, where you can be admired for your uniqueness and attract top dollars , ”He said. . “You can only cut a lot of lattes on the path to financial freedom – the focus should always be on the top line: how you do best in what you do (without being a double whammy) and get paid more in the process so that you can save and invest more every year. ”

Over the years, keep checking yourself when you start making more money. From your letter, it seems you care deeply about your leisure security so it probably won’t be a problem, but it’s easier to spend more when you start earning more.

“It’s good to be counter-cultured and not spend what you do,” Benold said.

And last but not least, the headline made you read this article. “There will be a lot of ups and downs along the way,” Benold said. “It’s good to remember the ultimate goal, but the plan will change many times along the way.”

Reader: Do you have any suggestions for this reader? Add them to the comments below Have a question about your own leisure savings? Email us

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