Tuesday, October 13, 2020

Why you should start saving now

by Bobby Dieringer 

When to start saving for retirement | Vanguard

Why should you start saving now? As teens and young adults we don’t really think about saving money or think about the future. Saving can play a big role in paying off some college debt or just build up money over time. So if you start saving at 25 you will have 10 more years then if a 35 year old starts saving. But you can save before 25 and be like 15 years more. That's more years of building up cash. We are so used to just blowing cash on the wants in our life but we aren't saving for the needs.

In a investopedia article “Why Save for Retirement in Your 20s?”, Steve Richmond says, “When you’re in your 20s, retirement seems so far off that it hardly feels real at all. In fact, it’s one of the most common excuses people make to justify not saving for retirement.” Yes if your 20 years old retirement is years down the road but there's nothing wrong in starting now. All it will do is benefit you in the long run. So try to devote around 20-30 percent of your income towards saving.

How would one start to save? First of all you need to SAVE before you spend. Your money not spend it all on the new champion apparel.Open up a savings account, make a budget, save around ¼ or ⅓ of your income, start an emergency fund, and pay off any debt if you have any. 

The difference in retirement savings if you start at 25 vs. 35 - Business  Insider

It's good to start saving now because you can develop good habits that will help later for your financial decisions. Say you go to college and you haven't saved one bit. You're going to have a huge financial burden once it's all over. But if you save some of that is taken care of so the burden is so harsh. Saving young can help with retiring earlier which I'd be glad to retire earlier than normal. Also at a young age you make stupid decsions and saving can help build up a emergncy fund which can cover a stupid mistake. Like if you get in a car accident and you have enough saved up for it.

I believe that if you start saving now it will make your life simpler. You will have extra money that you didn’t even think you had because you spent it all as soon as you got it. I hope this changes your mind on when you should start saving.


Works Cited

“5 Money Saving Tips for Young Adults.” First Bank, 22 Sept. 2020, localfirstbank.com/article/5-money-saving-tips-for-young-adults/. 

Richmond, Steven. “Why Save for Retirement in Your 20s?” Investopedia, Investopedia, 28 Aug. 2020, www.investopedia.com/articles/personal-finance/040315/why-save-retirement-your-20s.asp. 


15 comments:

  1. i think the question you forgot to consider in your blog post is how investing coincides with saving they can get pretty same in eqaulities. but yes i agree with you everyone should save at a young age for when they retire they wont have problems. also thought the graphs were really helpful on how the money grows fast. with that interest.

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  2. I think this one of the most important topics we covered in class. I like that you gave examples of how you can start to save your money and gave specific numbers. I also liked how you gave a specific example of why people should save to emphasis it's importance.

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  3. I believe that it is very important to start saving early because then you are getting head start on your savings and using compound interest you can gain up to 30,000, just by saving money in your twenties instead of your thirties. I thought the visuals you used were amazing to show how much saving early helps you. Great Job!

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  4. When talking about how people save money I think it can be very personalized to them and their style of life. But with this blog I think you really generalized the most importance aspects of saving your own money and setting yourself and your future up for success. I also like the graph you included, this is a very good visual to add to your writing.

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  5. You're right, when you start to save early it only benefits you later down the road. I like the visuals you included with your article, they are factual and go with everything that you talked about. One thing that you could further explain is how to start saving. You stated some good examples of how to save but you didn't go into too much depth with them, when they could really educate people further. Anyways, good job on talking about a topic so relavent to our age group and explaining how it can impact everyone in the future.

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  7. This has been a large aspect of what we have learned about in class, and I appreciate you writing about this topic. I like the reasons and motives as to why we should start saving early that you included in this piece, as well as the image/data provided. You presented great evidence and backed up your opinions, but I wonder how many people will actually follow your suggestions and begin to save early.

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  8. This is a great blog Bobby! I really enjoy how it covers a lot of what we learned in class. My question to you is what do you think the best age to start saving for retirement is? Is there a time where it is too early to start? Also could peoples saving be affected by going to Grad School or extra school after college? I wonder how that affects people that start saving at the same time.

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  9. Bobby’s blog post definitely wants to make me start saving money! He did a good job explaining the troubles you may have in the future if you don’t save early. One of the main topics he talked about was that you could build up debt from college and it will be a burden to try to pay it off if you have nothing saved. Other than a few grammatical errors, Bobby did a nice job explaining the importance of saving and the benefits it will have for future purchases.

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  10. Saving really helps in the long run doesn’t it! Since savings can be an exponential growth because of interest, you can really expand your income if you keep your money safe in a bank with compound interest. This can be the same for retirement savings. If you start saving early, your money will grow exponentially and be really good for you in the long run. Life isn’t all about the short run, there is a lot about the long run in life.

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  11. Thank you for teaching me more about savings for my future. When do you think it is the best time to start saving? Could there be a advantage for starting one year earlier? I personally think that the earlier the better. Right when you can get a stable income is right when you should start saving for your future. I also really liked the chart you shared with us as it showed what you contribute compared to your balance at age 65. Great blog!

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  12. You did a great job explaining the importance of saving. You really outlined the difference between if you are to start saving now and if you were to start saving later. Saving early can really benefit you for several reasons, like you said. I like how you outline those reasons. One reason is that it will help you retire early. Another one was that it will help cover any mistakes you make as a teenager/young adult such as a car accident. It helps you build an emergency fund. You really did a good job of covering some really good points of why we should save early. Good job!

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  13. Most people already know that saving early is a good thing, but I doubt that all of those people also know how much it can benefit you in the long run. The graph on your blog says it all: just starting a few years earlier can earn you a good couple extra thousand dollars.

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  14. Thank you for teaching me the importance of saving money. Now a days, there are a lot of people out there who don't really understand how saving money can help in many ways such as, car repairs, buying a car, or even if you want to save up your money to buy yourself something nice. The point is that with this article you demonstrated that saving money is something that anyone who of appropriate age to consider doing this. Do you think people should start saving at an early age, even if it's just putting twenty-five cents into a piggy bank?

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  15. I think this blog does an excellent job reiterating the important, key points that we have learned in class. And I totally agree. I don't think there really is an age that would be marked as "too early"to start saving. Sure, some people may think you're a little crazy for starting at a young age, but in the end, you'll likely be in a much better financial situation than them when you grow up. As we know, compound interest is so important when it comes to saving. So, the earlier you start saving, the better.

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