Motivating Yourself to Save
So one thing that you, what you need to know about retirement is again, just like with savings, it's not just about the amount, it's about building the habit. Thinking back to lily at the very beginning, she was 25, put $400 aside every single month for 40 years and had nearly a million dollars saved and she didn't even scale up her contributions. You need to be consistent, consistency is a huge part of this. So even if it's not a huge amount, think perhaps a small percentage of your salary, then it's able to be money that you're putting aside every year. And again, compounding interest, taking advantage of that, making sure it's working for you, especially at an early age. I also like the idea of just increasing by tiny bits here and there. So starting at 1% telling you if you put 1% of your paycheck away, you're really not even going to be feeling a difference, you might in that very first month, but very quickly, it's like that's what you always earned and what you always used and t...
hen how about every six months inching up by a percent Until you get to whatever goal it is that you've set for yourself, maybe it's 5%, maybe it's 10 Heck, maybe it's 40% whatever it is, just inch it up, bit by bit. Another thing I believe is truly important to consider life tends to not get less complicated a lot of times we do use this excuse of, well I will make more in the future, it will be easier to do this when The thing is your life is going to change when you're 25 maybe you are struggling with trying to figure out your career not making as much money, having some debts you're trying to pay off when you're 35. You might be wonderfully established in your career but maybe you've bought a house, maybe you've started a family. Those things cost a lot of money. So just keep in mind that even as you earn more lifestyle inflation and just life itself tends to happen. So it doesn't necessarily get less complicated and easier. Which is why I encourage you to get started right now. But one thing that can get really hard about that is this idea of actually connecting with the future because it's hard to think about such a long term goal that is incredibly far away were really much more focused on the here and now. Maybe something a bit short or medium term but 40 years from now, Are you kidding me? That is so far down the road. But an interesting study that I believe came out of U. C. L. A. Found that if you see an aged photo of yourself, you are actually more likely to connect with this future version of you. But this idea that you are connecting to the future version of you and giving yourself this gift by starting early and being consistent because I am now at the very end. Finally going to share this big secret for you with big secret with you about money and it is that you have to determine what you value. I've mentioned it before, but I would love for everyone to take a moment to write down three things that you truly value for me. It's things like investing into my relationships, being able to travel and also, I love living in new york city, it's expensive place to live, but it's something that I invested and I value. So I'm willing to pay the premium and I want you to think about these things and how the way that you're behaving right now, how does that align with what you claim you value? And do you actually value these things? Or are you spending in a way that doesn't align? Because ultimately, at the end of the day, life really, truly is all about trade offs. So I would like you to ruthlessly prioritize on spending what you value, you splurge on what matters and scrimp where it doesn't because again, back to the initial idea, I talked about the very, very beginning of taking back control, You'd be shocked how much control you are in when you are spending in a way that aligns with what you truly value? Because even if you're not making a ton, it still can make sure that you feel in control and you're spending in ways that make you happy