Automate your Savings! Automate your Life!


Think about some of the biggest financial mistakes…

It’s easy and automatic. Trust me! It works looking back now:-)

I didn’t pay attention much to savings my money in my early 20s. And when I started working full time every paycheck I earned went straight to paying my student loans, credit card bills, car notes, rent, restaurant, gas. By the time, I paid off my bills; I had a very little disposable income to put towards savings, let alone towards an IRA account. I contributed to my 401K, but I made probably small contributions around 3%. All I remember are my stupid mistakes, perhaps laziness on my part. It cost me, and I see it now. When I had extra money, in the end, I spend on eating out with friends.

So when I run a calculation in trying to re-living my 20s assuming I consistently saved $200 a month invested in the S&P 500 Index starting at the end of 1996 to end of 2006. During that period, the S&P averaged return about 10%. So my annual investment of $2,400 a year for ten years would have grown to $43,419 minus inflation.

And if I run that same number ($43,419) beginning of 2007 to early March 2017 that original investment would grow to $127,920 at 8.75% averaged return over that period.

I know…Bummer!

Dec. 31, 2006 15.79%
Dec. 31, 2005 4.91%
Dec. 31, 2004 10.88%
Dec. 31, 2003 28.68%
Dec. 31, 2002 -22.10%
Dec. 31, 2001 -11.89%
Dec. 31, 2000 -9.10%
Dec. 31, 1999 21.04%
Dec. 31, 1998 28.58%
Dec. 31, 1997 33.36%
Average 10 year return