Having a 4 % rate of return: $142, 185
Having a 6 % rate of return: $169, 277
Having an 8 % rate of return: $202, 501
You need to keep in mind that these calculations don’t accounts for the many factors that can affect prosperity over several decades, including windfalls, emergencies, and increases or dips in the market. Also, saving 100s or thousands of bucks per month is an driven goal, more than most Americans can manage.
Nevertheless, getting into the habit of regularly saving any amount will be great for you in the long run.
Here are a few simple, low-stress ways to get started:
Sign upward for your employer’s 401(k) plan and take full benefit of any company match, which essentially gives you free money
Give rise to a Roth IRA or traditional FURIA, a tax-advantaged individual old age account
Consider automated investment services known as robo-advisors that can help you out no matter how much you have in the bank
Research cheap index funds, which Warren Buffett recommends