Today is the day…you buy your house. Amazing!
What town are you in?
Did you remember to save some money to furnish it?
Today is the day... you drop your kids off at college You are so proud of them. Congratulations!
What school are they attending?
How are you going to pay for it?
Today is the day… you hand in your termination letter. You have been working for 40 years and you are ready to hang it up. Congratulations!
What do you have planned for tomorrow, golfing traveling, relaxing?
How much money do you need to live?
If today was the day…would you have answers to all of these questions?
I surely hope so but if you are like most people, a long time ago you pushed your long term goals to the back of your brain and decided that winging it was the best course of action.
I’m here to let you know that it doesn’t have to be that way. With a little financial planning you can map out your future and figure out how much you have to start saving today to accomplish your goals. So when the day is actually today you will be prepared! This kind of planning should be obvious but just in case its not, let’s make it nice and simple.
Example:
Let’s say you need $100,000 in 5 years for a down payment. First, let’s assume 0% growth on your money.
If you wait 4 years and 364 days to start: You have to come up with $100,000 over night.
If you wait 2.5 years to start: You have to save $3,333 per month.
If you wait 1 year to start: You have to save $2,083 per month.
If you start today: You have to save $1,666 per month.
The early you start the less you have to save per month.
And if you can’t save $1,666 per month, how you are going to save $100,000 overnight??? Sometimes mapping it out shows you the truth; that your goals need to be changed!
So, close your eyes, imagine that TODAY IS THE DAY and answer the questions. Take those answers and figure out how many money you have to save per month to accomplish your goals.
In reality today is always the day! The day to start saving for your future!
-Jared Friedman
