How Does Your Present Spending Impact Your Retirement?
by Michael Masterson (10/28/2004)
If you’d like a quick reminder of the importance of saving, consider how the dollars you spend (or don’t spend) today can impact your retirement. Assuming a 20-year holding period and a 12% annual return, every $1,000 you spend today equates to roughly $10,000 less in your retirement fund.
If you have young children, consider that the $10,000 you might save by buying a quality used car instead of a new one could be worth over $60,000 only 16 years later. Depending on where your child goes to school, that just might get her through all four years.