Imagine if your dad was not only a financial advisor but also your boss, and every time he paid you he said to save it instead of spending it on unnecessary things. That’s my life.
But, I’m an 18 year old girl and I need things. I need gas and insurance for my car but more importantly there are hair and nail appointments to pay for. Oh, and let’s not forget Starbucks. Admittedly, there are times I run out of money and have to ask my parents for gas money. Then I get lectured all over again. I know they’re right though but it’s hard to save money at my age. Let’s face it, hair extensions aren't cheap!
I know I need to save and budget my money. As I learn more about investing I am understanding more and more why my dad keeps telling me to save and invest. He made the video below to help people like us understand the power of compounding interest and why it’s so important to start early.
I've decided to start with $25 a week so that every month I know I am saving $100. I will open an account when I have enough to meet the account opening minimum. Hopefully I can stick to that and not be tempted to spend it. It’s not going to be easy but my dad says that I will get used to not having that extra $25 a week. He obviously doesn’t know what a Starbucks Java Chip Frappuccino costs because he just drinks black coffee from a Kuerig. No sugar, no cream...who does that?
Anyway, watch the video below-it’s only takes a few minutes. Go through the calculation exercise and hopefully you’ll be as amazed as I was at how easy it really is to accumulate a lot of money just by saving a little each week. I think you will agree it’s worth the small sacrifice. Then, if you have any questions or are ready to get started, call our office to set up a time to meet with my dad.
Note from Paul: Hey everyone, the video below is part of our Quick Hit Video series. They are very short videos that I record spur of the moment when I have something I want to talk about. They are unscripted and most will have a little humor to them. We hope you enjoy them.