It's Easier to Save as you Get Older

We all know that saving for retirement is an important part of life, and that the slow wealth-building tactic of investing a small amount of money each month is a great way to accomplish this task over time.  If you're just starting out of school or college and find saving and investing very difficult, I'm here to tell you that it does get easier with time.  Here are a few reasons why I believe this:

1.) Less 1 Time Expenses - Think of all the money you had to spend when you first started out on your own.  You had to buy a bed, TV, kitchen supplies, a car, or even a new couch.  Chances are, when you hit your 30's you will not have nearly as many of these expenses. 

2.) The Benefit of Living with a Spouse - Hopefully as you age, you'll find someone you want to spend the rest of your life with.  An added bonus is that you can get an almost economies of scale experience by pooling your expenses together.  Food, living, and commuting expenses are less per person since you have 2 incomes with only marginal increases in expenses.

3.) Knowledge Increases - As you age, hopefully you'll start to better understand a whole slew of life skills.  Not only will you know how to better manage your money and savings, but you you'll most likely know how to cook more, or fix your car a little bit, or even just knowing whether you are getting a good deal.  This knowledge will help prevent far more mistakes than you made when you first started out on your own.

4.) Pay Increases - Generally speaking, as you age and become more experienced at your job/career, you'll likely have a higher pay than the inflation rate.  This will only add to your ability to save. 

5.) Good Habits Become Routine - This one only works if you made a habit out of investing when you were younger.  If you were disciplined enough to do this in your younger days, then you should be on automatic in your later years.  You'll also find that you will not miss your saved income, because you've already been living without it.

There are two things that can through all these previous points out of balance, and that's living above your means and children.  No matter how much you make, if you spend more than you take in, you'll have serious financial problems.  Likewise, depending on when you have children will also significantly impact your finances.

Sometimes you might get frustrated with your finances, and understandably so.  Just know that if you have a good head on your shoulders, and stay disciplined, it will only get easier.

Wonderful Moment of the Day - Coming home to a warm house.