Money Magnets

In order for me to get 10 million by the age of 60, I'll have to invest at least 62,000 every year starting at the age of 30. The requirement is to have it compound at a per annum rate of 9% net. If I start at age 40, I'll have to invest 162,000 a year just to get to the same amount! It really pays to plan ahead and start early!

Watch the video here in Salve Duplito's blog. Don't forget to read about the "Important things to remember" per age bracket when it comes to financial planning.

Here's the list by Salve Duplito for those in their 20's and 30's.

Important things to remember:

• Automate your savings
• Start with saving at least 10 percent of your income and increase from there
• Start setting up an emergency fund up to six months of your living expenses
• Invest unexpected windfalls instead of spending them on gadgets or gimmicks
• Try mutual funds
• Inquire about your company’s retirement plan package
• Invest in stocks if you have the stomach for the roller coaster ride in the market. Over long periods, stocks have gone up much more than they have gone down
• Consider bonds if you are a conservative investor
• How much to invest for the long-haul? A rule of thumb says you should subtract your age from 100 and then add a percentage sign
• Just say no to debt other than a home mortgage
• If you can’t live without plastic, pay the entire balance each month
• If you have debt and have savings, take out your money from the bank and pay your debt. Paying off a loan can be one of the biggest investments you can make
• Review your health benefits at work to make sure you have the coverage you need
• Even if you are just renting an apartment, be sure you have insurance on the contents
• You do not need life insurance if you have no dependents. Once you have children (or if your parents are now dependent on you), you will probably need more than at any later time in life
• No-frills term insurance is usually the simplest and lowest cost option
• Think carefully about buying a house versus renting. Since the fees can be steep, buy a home only if you are going to live in it and do not need to relocate in a few years
• Buy only a house you can afford. A lot of people end up getting strapped for cash because of the tendency to stretch themselves to buy the biggest house they can
• Start thinking about writing a will