This is the Biggest Money Mistake You’re Making
Take a little from today and use it for a better tomorrow
You must save early and often, and trust that everyone has the capacity to be a saver. Once you’ve saved enough for an emergency fund, you must invest all extra cash because with interest rates at near 0%, your cash loses value over time. You must invest!
The easiest way to invest without knowing how to, are mutual index funds. These funds allow your savings to earn compounding interest. Have you ever heard about the importance of compounding interest but you still don’t get it? Let me explain it without using a single calculation.
Like so many women around the world, 2020 has meant COVID lockdowns and not working full time. In my particular situation, I was home with my two small children and I freelanced. That is the reason why, I didn’t contribute a single dollar to my retirement accounts, while my husband contributed to his. He contributed the recommended 15–20% of his income but our retirement accounts GREW by the EXACT same amount in 2020.
I was a big saver in my 20s and 30s. My husband learned about the power of compounding interest from me in his 30s. All those savings I did while I was younger, came through in 2020 and thanks to compounding interest my retirement account worked for me instead of me working for it.
Investing the money you save is that important. And if you think you can’t afford to save, my question to you is, can you afford not to?
