There it was, staring me in the face. An article, written by a millennial, titled “If You Have Savings in Your 20s, You’re Doing Something Wrong.”
I stared at it, dumbfounded.
Like many of you, I was once a 20-something. I had more hair back then. I also didn’t bother investing in my company’s 401(k) (which had a generous match). And I can tell you without a doubt that the advice given in the aforementioned article is dead wrong.
The author, Lauren Martin, says to not save money. Instead, you should simply make more money. Yet that’s not so easy to do if you’re already working several jobs (unless you’re doing something illegal, I suppose).
And it’s highly likely that, given her attitude, the author will spend the additional money earned, as well.
I’m reminded of a quote from Will Rogers, who was one of America’s first big media stars in the 1920s and 1930s. He said, “Too many people spend money they earned… to buy things they don’t want… to impress people that they don’t like.”
In my opinion, the author will likely face dire straits in her old age, and she’ll be screaming for society – via the government – to bail her out. Never mind the extremely prevalent warnings that everyone’s future retirement is solely their responsibility.
Time Is Money
The worst part is that someone in their 20s, like the author, really doesn’t have to change their lifestyle in order to save for their retirement. Even small amounts invested early on will turn into a lot of money once you reach retirement.
Patrick O’Shaughnessy of Millennial Invest says that each dollar invested at age 22 will be worth $17 at retirement!
A simple example is putting aside $100 per month, which won’t crimp anyone’s lifestyle, starting at age 25. Even at just 6% annually, that $100 per month grows to more than $185,000 at age 65.
