yep. I drop in a percentage every month straight out of my paycheck and my company matches it each month as well. That money then gets invested in moderate risk stock opportunities but I may get more aggressive while I am so young.
Do it now. Even if it’s a dollar each month… that money will grow on a larger interest than it ever will sitting in a bank account!
Let’s assume you are in high school right now (17 years old let’s say) and only can afford to put in $50 a month. Well let’s just see what happens with even that small amount.
$50 a month for 12 months is $600 a year
$600 a year x 8 years is 4800 that is already building interest by time you are 25. That’s without even trying or investing or having someone match you (like an employeer). You have money for your future without even feeling it in your normal bank account. That money that sits there is building interest and can be invested into small stocks without you even worrying about it or caring because you are already too busy in college. As your career builds and you pay off your student loans you can drop a few extra bucks into your 401K or invest a bit more aggressively. By the time you are 25 you will have a job (hopefully) and your employeer will match a percentage or a complete match dollar for dollar. That means you get free money… if you put in $100 a month so does your employer. $100 a month x 12 is $1200 and your employer matches with $1200 as well. That’s free money. $1200 X 10 years is $12,000 that you got for free as a perk for working with your company or the many companies you work for that follow. As you build your career you can obviously afford to put more into it and you build and build and build. I like the word free and I like it even more when money is involved lol. If our generation was a tad bit more resourceful we would cap out in our 50′s and live our remaining years on an island somewhere. That’s my plan at least.
Invest in your future first and foremost.