A loved one asked recently about 401k contributions. The best time to ask these questions is while the ink is still drying on your high school or college diploma. Time is on your side. In fact, time is your greatest ally. The longer you wait to ask questions about retirement planning, the longer you need to wait until financial freedom is achieved.
There are two pricing structures you can choose from when determining just how much you're willing to pay for financial independence. Pay now and you will forego indulgences and splurges. Pay later and you will pay a higher price due to your missing ally – time. Time multiplies. A twenty-something-year-old will see time double earnings every seven to ten years depending on the rate of return. A $10,000 investment doubled six times becomes $640,000. Not bad.
Beware of anything that subtracts from financial freedom. Anything you pay to others for the use of their money usually results in a big negative. Credit card interest is one of the biggest challenges and must be eliminated in order to become financially independent. Do the math. Multiply using time and avoid subtractions by cutting out credit card debt. Decide today what price you're willing to pay to get maximum dividends in your retirement years. Have a great day.
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