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It can feel overwhelming to plan for retirement when youre still trying to get your financial bearings.
Its nothing quite that intense its a matter of letting your money work for you over time.
Is the term new to you?
In a nutshell, its the interest you earn on interest by reinvesting your returns into your account.
At the end of the second year, youll have $110.25.
Okay, $.25 isnt a lot, but its something.
And applying the same principles to larger sums can yield results that make a significant difference in your retirement.
The earlier you start, the better the results.
For Dunlap, its one of the smartest routes to take on your wealth-building journey.
Sherecommendstaking a portion of your money and reinvesting it to allow compound interest to grow.
Compound interest works regardless of age and regardless of the amount of money.
Compound interest works whether youre 18 or 88 or somewhere in between.
And compound interest works whether you have $100 or $100,000, Dunlap said.
Be Patient Youre in It for the Long Haul
Lets say you invest wisely.
Like, really wisely.
How about right now?
Anything from additions to the family to sudden illnesses could derail your plans.
You should also be prepared for challenges like inflation and rising healthcare costs.
Investing is not about right now.
It is about over the course of years, if not decades, Dunlap said.
Despite what you might believe, you dont have to be born rich to retire with millions.
You also dont have to join the pack of the wolves on Wall Street.
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