I am on the second last week of Personal finance, which was mostly about reading finance books. Since I haven’t read enough to post about, I will focus on the other topic, retirement, and savings.
It is a fairly simple concept. Save when young, and slowly save more as you get older. If you come into a windfall, it is best to save most of it. If you get a pay raise, do not increase expenditure, but increase savings. My teacher talked about different retirement savings accounts, but I still do not really understand their purpose from normal savings accounts. They do have different interest rates and tax timings, but I feel like he did not explain them well enough for me. Right now, I save all of the money I receive. The only exception is the money that I receive from holidays. I have had several jobs, all of which I have saved 99% of my income. As I am still a kid and am not paying many bills, I will continue to do so, until I have a necessary purchase.
My teacher gave me a lot of stats on people, and what they have saved for retirement at different ages, and in different years, but I know that I will already be a step ahead since of working when very young {I was an actor}. I will also be reading many finance books in the next few weeks, as that is my assignment for this week.
oliver neudorf 