I never said it was enough to retire on, just pointing out what compounding interest does, and how waiting makes basically impossible to catch up. If you can’t save $500/month in your 20’s, you won’t be saving 10k a month in the 40’s.
And you don’t need 500 a month in your 20’s. You can save $300 a month from 20-65 and still have 2.5 million.
It’s not impossible, that’s less than $100 a week.
If you see a kid driving a new car, his average payments are 800 plus insurance. He could drive a used car for half the money and retire. That new car in your 20’s is basically saying you don’t want to retire. Unless you got it like that of course, but like you said most people don’t, and that will still choose a dumb decision. I had friends finance a 30k wedding in there 20’s. There goes that retirement. Or going on an expressive trip that costs 10-20k. That one trip is no retirement. It really adds up like that.
I never said it was enough to retire on, just pointing out what compounding interest does, and how waiting makes basically impossible to catch up. If you can’t save $500/month in your 20’s, you won’t be saving 10k a month in the 40’s.
And you don’t need 500 a month in your 20’s. You can save $300 a month from 20-65 and still have 2.5 million.
It’s not impossible, that’s less than $100 a week. If you see a kid driving a new car, his average payments are 800 plus insurance. He could drive a used car for half the money and retire. That new car in your 20’s is basically saying you don’t want to retire. Unless you got it like that of course, but like you said most people don’t, and that will still choose a dumb decision. I had friends finance a 30k wedding in there 20’s. There goes that retirement. Or going on an expressive trip that costs 10-20k. That one trip is no retirement. It really adds up like that.