“When you’re young you have time and energy but no money. When you get older you have money and energy but no time. And later when you finally have time and money, you no longer have energy.” – Anonymous
During our early adulthood, prior to or at the start of entering the working world, we have what seems like endless amounts of time and energy. I remember my summer breaks from high school thinking, I am “so bored,” only to wish now I had the free time that I so easily squandered. After this phase of life passes, each day seems to have less and less free time, but in replacement, a job provides money and coffee now provides energy. This adage of time, energy, and money has the same application in life as it does for savings and investments.
While you are young, you have years of being in the working world and, receiving a steady income. Years to dream about how you will spend your retired days when you are no longer working. Even though I enjoy my job, I still find myself daydreaming about how I will one day be relaxing at the beach with a fruity drink in hand as opposed to the annual vacation. During the beginning of your career, time and energy are truly your greatest asset. While you dream…your long time-horizon, with help from compound interest, can allow any amount of money you are able to save to grow into a sizable amount.
However, when you are closer to the golden years when you are going to be needing these saved dollars, you have less time for the power of compounding to work. At this point, you are lacking the lengthy time horizon and energy you once had. On a plus side, you probably have a higher earning potential than you did at the start of your working life. You have more money to apply to saving for your financial goals. If you are just starting to save for retirement at this point, you must save a larger portion of income to load up the retirement bucket since you lack the gifts you once had in your youth.
It goes to say, when you have nothing else but time and energy of your youth, you must use them to your advantage. Make the momentum of your early years count, by letting your assets of time and energy grow your limited money into something substantial.
Give a bit of your time and energy and find a CERTIFIED FINANCIAL PLANNER™ professional to help you start the process toward growing your money and making your early years count.
Published in the Victoria Advocate
Beth Koonce is a CFP® Professional for KMH Wealth Management, LLC. She has been with the firm for over four years.