47 0 0 0 13 6. College students tend to be focused on the how much should i invest in acorns—studying for the latest exam, finding the best party to attend, and scoring tickets for next weekend’s game.
But too much focusing on the present can have a negative impact on your future. Thankfully, you have a great deal of control over your destiny. Now—before you’ve entered the workforce—is the time to begin planning for retirement, to ensure comfortable times ahead. Regardless of income level or major, most college students have the ability to save for retirement—the question is whether you have the desire to start saving so early. The future benefits are undeniable, but it can be difficult to recognize that when you haven’t even graduated yet. Here’s why you should consider starting to save for retirement right now—and how to make it happen with minimal effort.
Many college students don’t save for retirement because they don’t think they have enough money to make a difference. That’s the irony: Saving early is the most important aspect of building a nest egg, not how much you’re saving. Saving for retirement is about maximizing compound interest. Compound interest is interest that builds onto itself.
Over decades, your original contributions will grow exponentially because of compound interest. 50 each month to reach the same result after 30 years—more than double his original amount. There’s always a reason not to save—you want to go to Cancun for spring break, you have textbooks to buy or homecoming tickets to pay for. But here’s a secret: The excuses don’t go away as you age.