In this example, let’s say you are 18 years old. I am going to use the Ontario minimum wage of $14 per hour as of Jan 1, 2019, (minimum wage varies by province).
You need to put aside and forget about $14 per week. That is only one hour of pay per week, which is only 2.5% of your total pay (1 hour out of 40 hours per week).
If you put aside $14 per week for 52 weeks, you will have $728 after one year, to purchase your first investment.
If you earn 7% per year on your investments and you repeat this action for 40 years, you will have $145,000!
If you continue for 50 years, i.e., when you turn 68, you will have $296,000. Wowsa!
I know, I know, 40 or 50 years is forever away! But remember the average life span is now 85 years old and climbing.
Soooo, of this $296,000, how much did you actually contribute? You contributed just $36,400, (i.e. $728 x 50). Time and returns (i.e., "Mankind’s Greatest Discovery", compound interest – see Investment Piece #1, did the rest!
No Excuses!! Take control of your financial liberty.
Learn how to earn a bit more money:
Learn how to save a bit more money:
Also, learn about the government pensions that you are entitled to receive:
So you see, even though you make minimum wage, with a plan, you will have money!