Marble, Golf Ball, Baseball, or Beach Ball?
Which would you rather carry around in your pocket; a marble, golf ball, baseball, or beach ball?
Put a marble in your pocket and you may never feel it. Occasionally, when you reach into your pocket for change, you will see it and remember it is there but most of the time it will be out of sight and out of mind.
A golf ball is a bit bigger. Put it in your pocket and you will feel it at first. But soon you will become accustomed to it and you will be able to walk around normally. Of course it is pretty hard to ignore when you reach your hand into your pocket.
You can't ignore a baseball in your pocket. It will fit by itself, but you probably could not put anything else in your pocket. You will also notice it every time you stand, sit, or take a step. It may not be a hindrance but it certainly isn't comfortable.
The beach ball simply won't fit into your pocket, no matter how hard you try to stuff it in.
Saving for retirement can be analogous to what you carry in your pocket.
Start early enough and you just need to carry around the marble. A small consistent investment into your retirement plan, given enough time, should be enough to comfortably reach your retirement goals. Occasionally you will notice the deduction from your pay stub or bank account, but the contributions should be small enough that it is not making an impact on your lifestyle.
If you are slow to start retirement saving you can make up for your lost time by making bigger contributions. It would be similar to carrying a golf ball in your pocket. At first you will definitely feel the effect on your lifestyle but it won't take long for you to adjust. When you look at your budget it would be hard to ignore your retirement contribution, but it should not feel painful.
Some people end up waiting until it is almost too late. Having less time to save means they need to contribute more. Like putting a baseball in their pocket, it will still fit in the budget but it probably also prevents them from adding other expenses (or toys) they may want. The amount they have to save is large enough that it is difficult to overlook and is never far from their mind.
If you wait too long, you simply cannot catch up. Your retirement plans will need to change.
The sooner you start, the more comfortable your retirement savings. Don't delay; start today.
Photo credits: Marbles… by kevinjay; golf ball, at Ruth Lake Country Club by WebWideJosh; Baseball by acordova; model with beach ball by planetc1