You Pay Yourself How Little?
A different way to think of your investments is that it is the salary you give your future self. Consider the following example: Joe makes $50,000/year and invests 10% of his income a ($5,000/year). There are about 2000 hours in a year of work so that means only about $2.5/hr goes to the future Joe. That’s about one third of the minimum wage!
Give Your Future Self a Raise
If you find that your future self is working for sweat shop wages consider the following: If you could cut back some expenses and invest the savings it’s like working a lot more… For example cutting $50/month on cable would be like working an extra twenty hours for your future self.If you are the type of person that always spends any available cash try boosting your investment rate by one percent and see if you really notice, because your future self really will! If Joe invests another 1% ($41.67/month) his future just got a 10% raise! You will be your future self soon enough, so be kind and give yourself a raise today!