Even small amounts contributed consistently can add up over time. One of the biggest misconceptions I’ve ever witnessed is the number of folks who just don’t believe they can make a difference and thus opt to save almost nothing.
Let’s think about saving and investing for retirement like this… you start with small but consistent contributions that begin to grow and build into a nest egg that will eventually turn back the other direction, rather than contributing monthly, you’ll begin withdrawing monthly from your retirement portfolio.
Example, if you had forty years to retirement (anyone aged 27 or younger) and began saving $100 per month it would eventually result in a portfolio of money that could pay you out $1,171 month for retirement cash flow. If you saved $200 per month it could result in a portfolio that could supply you with $2,343 per month in retirement. If you save $300 per month for retirement it could create $3,514 per month in retirement cash flow.