Nuvision Essay Challenge
There has been a misconception that you have to be born wealthy or win a million dollars from a lottery to have a successful, comfortable and happy life. Sometimes, you just have to trick yourself in making sure that you save more than you are spending. These takes some of the smallest and simplest steps, but it can have the most substantial results. The most effortless steps that everyone, especially young adults, can do is to start now. The earliest you start, the more money you will earn. Don’t slack off too much because in the end, it will just hurt you. For example, if a person were to save $100 per week in their savings account at an age of 18, in at age 28, it will be total to about $48,000. In comparison, if a person were to start at age 20, they will earn about $38,000. The two years, made the second person lose about $ 10,000, which is a huge amount of money. Money will eventually grow, so it is better to start small.
Furthermore, starting early also leads to having emergency money in your saving accounts, in case anything were to happen. Make sure you don’t wait until there’s a financial emergency for you to save money because it will just be a hassle. Another tip of being debt-free is to analyze and prioritize what’s important over those that are not. Make sure to put first’s things first, this way, you are not wasting time and energy on something that may not matter as much in the future. This ultimately leads to examining the difference between what you want and what you need. Once you have acquired a few couple dollars, it may be tempting to spend it. However, make smart decision into buying only those that you need, and not those solely because you want it. Also, often times you are required to put something off that is fun or entertaining in exchange for something more fun and rewarding later. This is delay gratification, making a choice which prevents someone from getting something now, in return of being able to have something bigger or better later. An example of this is to buy the iPhone 5 now, or wait until you have enough money to buy the iPhone X. The strategy of delayed gratification is one the most effective personal traits that successful and wealthy people acquire. They are more successful with their career, relationships, and finances and in general, all aspects of their life.
With all of these to keep in mind, it is also important to keep in mind that inflation occurs in nearly every day. Because of inflation, the value of the future money decreases in regards to today. This means that you can purchase less amount of stuff with the same amount of money. This results in increased financial problems in the world. Make sure that you save more money and make sure that it is growing to beat inflation.
Furthermore, at the end where retirement is an option, people often face challenges in generating enough income to live comfortably. One sources of retirement is Social Security, which is where nearly 65% of Americans age 65 and up receive about half of their retirement income. The rest are from pensions (40 I k) and personal investments and savings. However, these may not be enough to cover the medical costs, housing and food. With Social Security, though, it is not enough to make a living. Those years that you have worked, you were required to pay taxes, which are then used to pay for SS benefits, which are collected by other retirees.
The SS will not be able to replace the original worker income and is not enough for the retiree to live life comfortably. Similar to SS, pensions are gradually becoming less dependable for income because not a lot of company can offer them. In fact, it is often that the only people who are receiving pension s are those that are a part of the government or in the teaching career.