We are 12 days removed from the end of the holiday season. We are 12 days removed from the beginning of a new year. This is the perfect time to make a change. This is a perfect time to start preparing for retirement. This is the perfect time to stop expecting things and to start taking control of your own life. This is the perfect time to start saving more money.

The topic is simple and has been discussed on this blog many times.

Start Saving for Retirement Today!

There is no magic formula to building wealth. There is no get rich scheme. It takes hard work, time and patience to build wealth. It takes a diligent hand. A person willing to sacrifice somethings today for a brighter future. It takes a person who is willing to invest for the long haul. The math is simple, saving over time along with compounding will help you build wealth. It will set you up for success in retirement.

No matter where you are in this life. No matter your age, you can still invest and have a nest egg. The numbers below will show you the data of investing over the course of different years. I will use an assumption of 8% returns annually. First, let's look at someone in their 20s with 40 years to invest until retirement.

Investing $25 a month for 40 years will yield: $87,250.20
Investing $50 a month for 40 years will yield: $174,550.39
Investing $100 a month for 40 years will yield: $349,100.78
Investing $200 a month for 40 years will yield: $698,201.57
Investing $300 a month for 40 years will yield: $1,047,302.35
Investing $400 a month for 40 years will yield: $1,396,403.13
Investing $500 a month for 40 years will yield: $1,745,503.92
Investing $1,000 a month for 40 years will yield: $3,491,007.83

It's amazing that by just investing $300 a month for 40 years earning 8% annually could give you $1,000,000 in retirement. That's all it takes. So, if you are just starting out and trying to figure out if saving money is important. It's as easy as saving $300 every month.

Second, let's look at someone age 30 with 30 years to invest until retirement.

Investing $25 a month for 30 years will yield: $37,258.99
Investing $50 a month for 30 years will yield: $74,517.97
Investing $100 a month for 30 years will yield: $149,035.94
Investing $200 a month for 30 years will yield: $298,071.89
Investing $300 a month for 30 years will yield: $447,107.83
Investing $400 a month for 30 years will yield: $596,143.78
Investing $500 a month for 30 years will yield: $745,179.72
Investing $750 a month for 30 years will yield: $1,117,769.59
Investing $1,000 a month for 30 years will yield: $1,490,359.45
Investing $2,000 a month for 30 years will yield: $2,980,718.90

Interestingly, investing $300 a month for 30 years yields more than 500 grand less than investing the same amount for 40 years. As you will notice, I added an investment of $750 and an investment of $2,000 to this section of data, because you need to invest more money each month when you start investing later in life. If you wait until your 30s to start investing, you will need to invest around $750 a month for 30 years to reach $1 million.

Third, let's look at someone age 40 with 20 years to invest until retirement.

Investing $50 a month for 20 years will yield: $29,451.02
Investing $100 a month for 20 years will yield: $58,902.04
Investing $200 a month for 20 years will yield: $117,804.08
Investing $300 a month for 20 years will yield: $176,706.12
Investing $400 a month for 20 years will yield: $235,608.17
Investing $500 a month for 20 years will yield: $294,510.21
Investing $750 a month for 20 years will yield: $441,765.31
Investing $1,000 a month for 20 years will yield: $589,020.42
Investing $2,000 a month for 20 years will yield: $1,178,040.83
Investing $4,000 a month for 20 years will yield: $2,356,081.66

As you will notice, it's getting tougher to reach 1 million dollars, unless you start investing around $2,000 a month for retirement, So, retirement is still attainable if you wait until your 40s to start. It just takes more money each month to reach your retirement goal.

Lastly, let's look at someone age 50 with 15 years until retirement (could probably use 20 years).

Investing $100 a month for 15 years will yield: $34,603.82
Investing $200 a month for 15 years will yield: $69,207.64
Investing $300 a month for 15 years will yield: $103,811.47
Investing $400 a month for 15 years will yield: $138,415.29
Investing $500 a month for 15 years will yield: $173,019.11
Investing $750 a month for 15 years will yield: $259,528.67
Investing $1,000 a month for 15 years will yield: $346,038.22
Investing $2,000 a month for 15 years will yield: $692,076.44
Investing $3,000 a month for 15 years will yield: $1,038,114.66
Investing $4,000 a month for 15 years will yield: $1,384,152.89
Investing $5,000 a month for 15 years will yield: $1,730,191.11

With only 15 years to invest, it will take $3,000 a month to reach 1 million dollars. If $3,000 is too much, then look at $1,000 a month. That will at least get you $346,038.22 in 15 years.

The amazing thing about this data is that I was able to show you a way to reach 1 million dollars in 15 years. You just have to save $3,000 a month. If that's too much, becoming a millionaire is still attainable, even if it takes you 40 years. That's why I believe that anybody can become a millionaire. It's why I push people so hard to get out of debt and start investing. The math is just to good for you to give all of your money to the credit card companies. It's too good for you to pass up investing for a night on the town. That night on the town will push wealth building further from your grasp. It will give you less time for investing.

The less time that you have for investing, then the less you get to enjoy the power of compounding. That is why it is important to start investing today. Even if it's just $25 a month for one year. Maybe next year you could bump it to $35 or even $50 a month. That gives you some money that will start working for you. Any money you invest works harder than you can even fathom. It doesn't need vacations and it can work for you 24 hours a day. It just keeps building on itself. It keeps growing.

There is power in starting a plan and investing month by month and year by year. There is a benefit to finding extra money in your budget, because that extra money invested today will just compound on itself in the future.

I always tell my wife the following statement, "The more we save today, the faster we can reach financial independence." That's the goal of investing. To reach the point at which working is no longer necessary. At this point, you could continue to work if you wanted. That's the position I want to be in. That's the life that I want to be able to give my wife and kids.

If you haven't started dreaming about the future and saving for that future, today is your day! Today is the day to take the reigns on your finances and direct your money towards a brighter tomorrow.