Wealth-building is NOT rocket science. It can readily be thought of as being a very logical step-by-step process. Continuity and persistence are the keys!

Starting Early:

Giving yourself plenty of time is the surest way to end up in the top rankings of folks who are actually ready for the ‘de-cumulation’ years. That is the time when people transition from the years of ACCUMULATING to the retirement/spending years.

Mathematics:

If people in their mid-twenties would begin a savings and investing program BEFORE spending habits become entrenched look at what can happen:

Let’s say that a couple just starting out decides to set aside 1/4 of their earnings and put those dollars to work at even a modest (safe) rate of return. By the time they reach their retirement age, they will have in the bank EVERY penny that ever passed through their hands!

The key to starting early is to begin the savings habit immediately (BEFORE taking on all those obligations and mortgages that are so easy and attractive). Saving money truly is simply a matter of habit. It can be a little painful at the start but after a few months of your new mind-set you will realize that the new reality is that you are doing just fine living on fewer dollars.

It’s very important to also put in place insurance and other ‘fail-safe’ measures to deal with the unpredictable. The comfort and peace of mind that accompany your new reality are immense!

Starting later:

If you cave in to the promise of short-term rewards, starting the savings habit is both more difficult to do AND more painful. Still… really worth it although the rewards will be worth LESS! (unless you win the lottery along the way)

NOT Starting at all:

I really hope this will not be your scenario. However, the sad fact is that this is where most people find themselves. Currently, the mean value for savings portfolios in our country for folks age 65 and older is $54,326. If they don’t continue to work for the indefinite future, these folks will soon outlive their money! A fate I would love to see you avoid!

If you are at or near the age where this sounds like you, your only alternative is to keep working (I hope you love your job). That, or develop some new marketable skills. Of course, people end up in this boat I’m describing through misfortune and such rather than not planning. However, lack of planning is the biggest culprit!

Make it a strong point to put yourself in control and start preparing for the older version of yourself that you will be meeting down the road sooner than you may think.

To your health and wealth,

K.C. Moore, RPh