Are You Scared of the Stock Market?

I can tell you from personal experience that the stock market can at times be a nerve-racking ride. I started investing when I was 18, and got taken down on the roller coaster ride that ensued in 2001. I was fortunate that my mom did not kick me out of the house, and I was able to save money. However, lots of that money disappeared. It was a sick feeling to see lots of what I had invested gone. I didn't have alot of experience with the markets, so I didn't understand it would eventually recover, and I should leave it alone, as well as invest more.

The ride over the last few years has been a rough one for many investors as well, however I am a firm believer that the stock market is a place to make money. Not all people do it, but would you rather have a chance to make 10%, or a guarantee at 1% in the bank? It will take a long time to retire on that kind of return.

Now, I know that investing is not for everyone. Many people are not comfortable with the risk involved, and that's okay. Others don't worry about retirement, however they should be at least making a plan. I started my retirement plan when I turned 21, in hopes of retiring when I am 55. Now, I've never had an overwhelmingly high paying job, so I've had to find creative ways to put money back, while my wife stays home with our child. Despite the loss of income, it has been well worth it. We will continue to put what we can back for retirement, and save what we can as well.

My overall advice is to invest when you can. Save when you can. Also, live your life to an extent. Don't overly spend, but occasionally do something nice for yourself, and save at the same time. You'll get a great feeling on both ends.

Are You Contributing to Your 401K?

With the uncertainty lying within the economy today, many people have decided to forego contributions to retirement as a means in which to save money. I highly encourage this to be one of your last options, and continue making contributions if at all possible, especially if your employer matches your contribution. For example, if you put $50 into your 401K and your employer matches that, you've earned an instant 100% return on your money. Your $50 contribution becomes $100, just like that!

With that said, I encourage you to revisit your budget and see if you can either up your contributions, or begin making them. When it's time to retire, you'll be glad you did!

Quick Money Facts

DID YOU KNOW? If you begin putting back $50 per month when you are 30 years old, by the time you reach 65 you would have over $100,000?!

*This fact assumes an 8% annual return.