Whether you’re the breadwinner of your family or financially supporting yourself, most of your earnings likely go toward immediate expenses. Should there be anything left over, you may often feel tempted to spend on a few luxuries to reward yourself for all your hard work.
Unfortunately, it’s a common mistake to spend so much on being comfortable in the present that you forget to set aside enough money to get by in the future. If you put off saving for too long, though, you may not have much time or money left to start or grow a retirement fund.
That said, keeping all your money in a traditional savings account won’t earn you much interest, even if you leave it there for several years. Instead, investing your money is one of the best ways to grow a sizable retirement fund. This is because many investment vehicles offer a higher rate of return compared to most savings accounts.
And with the power of compound interest, you can potentially make your money work for you. Done correctly, investing can help you earn a lot more compared to simply depositing part of your income each payday. If you’re still not sold on the idea, here are a few more advantages to investing for retirement while you’re still young.