Pretend you never got a raise. Put all of the extra you are being paid now into a 401K account,, If you already have one at work..add to it. Lets say you used to make $40K and now you get $50K. If you were living fine yesterday on $40k (or whatever) you still can. Pretend you are not being paid more.............just bank it. It's still yours...........it's just growing in an account for you later....and not being blown week to week as you get it because all of a sudden in your mind you think you're rich...so blow it all.
There is a financial rule called the Rule of 72's. That means if you divide the rate of your annual return you are getting on your 401K.......(.let's say that is 9% for the same of figures)............divide 9% into 72. The number you get is 8. So every 8 years the money in your account.......even if you never add a dime to it.........will double....every 8 years.
If you are 26 now.......and put in just $10k. At 34 that account will be worth $20k. At 42.....$40,000. At 50.....$80,000. At 58......$160,000. All from the original $10,000. Now imagine you put in another $10,000 next year. By 58 that account will be worth $320,000. Now in 2024 you put in another $10,000........................and so forth. Every 8 years it will double......as long as you get or average 9% on your 401K.
At your age.........you have 6 "doubling periods"..........between now and 66.....Social Security age. So if you put your extra raise money in every year.....DON'T EVER TOUCH IT........in 6 doubling periods you can easily be worth over $3 million.
That's what you do with the extra money......................if you're smart.
· Reply · Translate · Jun 1, 2022 · Edited: 2 yrs ago 
· Reply · Translate · Jun 1, 2022 
