Have you ever wondered about the secret to financial freedom? It may not be as complex as you think. The magic lies in something we all know but often overlook – starting to save early.
Saving money is not merely an act; it’s a mindset. It may seem challenging at first, especially when you’re young and just starting out in your career. However, the earlier you begin, the more time your money has to grow, courtesy of a concept known as compound interest.
Compound interest – or earning interest on your interest – can turn even small savings into a substantial sum over time. For example, if you start saving just $200 a month at the age of 25, assuming a 5% annual interest rate, you will accumulate over $300,000 by the age of 65, without ever increasing your monthly contribution!
Starting to save early doesn’t mean you have to make huge sacrifices. It’s about making small, consistent contributions to your savings, and making smart, budget-conscious decisions.
Remember, time is money, and with time on your side, you’re destined to see your savings grow. So, it’s never too early to start your journey towards financial freedom.
Matt Ward is a financial advisor and the president of New Century Investments, an independent investment advisory firm serving business owners, pre-retirees, and retirees in the Dallas-Fort Worth area and beyond. Matt is passionate about integrating investing, planning, and tax management into a holistic approach. Matt’s breadth of knowledge and experience in both taxes and investment management sets him apart, giving him the ability to design, advise on, and manage business strategies, tax efficiency, and retirement planning. He is known for his care and attention to detail and works hard to develop personal relationships with each of his clients so they can benefit from his customized service and guidance. He loves walking with his clients through their financial journey, supporting them and celebrating with them as they reach their goals.
Matt graduated from Texas Tech University with a bachelor’s degree and is a certified financial planner™ and chartered retirement planning counselor℠ professional. When he’s not working, you can find Matt hiking, playing the guitar, and spending time with his family. To learn more about Matt, connect with him on LinkedIn!