Is there a magical age when it comes to starting to save money? If you ask any financial professional their answer will always be the younger you can start saving, the better. Why? The answer is simple really, the longer you are saving for, the more money you will have in the long run. But it is also not a surprise to these experts that saving for things like retirement in your twenties is not a top priority.
Saving money is one of those things we all put-off and make excuses for. We are always making excuses for our spending and do not have enough discipline when it comes to our savings and our financial future. A common thought when it comes to saving for things like retirement or a house are that you can focus on it when the time comes. Putting money away next paycheck or unexpected expenses pop up so there are no means left over to contribute to your savings. This is the exact reason why you should start saving young, not only will you have a few extra bucks to fall back on when things get tight, but also starting to put money away at a younger age gets you in the habit.
Even if it’s only $20 a week, you will be surprised how quickly that $20 will add up for you. Any young person’s first job isn’t about saving for the future, but learning the fundamentals of money and how far a dollar can go when hard work pays off. And by making money at a young age you learn individual spending habits and start to create financial goals for yourself which is why implementing a savings plan while young is a good habit to get into.
So now that you’re a little older, say mid to later twenties and have full-time job and a steady income, this is where putting money away should become a requirement, but is not always the first thought. But what about bills, student debt or loans, housing, and just regular living expenses? It’s true they add up and add up quick. But by this time you should have an idea of your financial goals and have worked out a personal budget to help keep you on track now that you have a regular income. If not, we would recommend going to see a professional to help get you on the right track.
When you meet with your bank they will talk to you about Mutual Funds, TFSA’s, RRSP’s and more. Because finance 101 isn’t mandatory in school, a lot of young people don’t know how these types of investments can help them get their financials started, which is one of the main reasons why some savings don’t start till a later age. But no matter what age you are almost every bank these days offers high interest savings accounts that you should definitely be taking advantage of. The more money that’s in your account, the more interest you’ll gain and money you’ll get!
We understand that saving money isn’t as exciting as spending but you’re only setting yourself up for financial success by saving sooner rather than later.