Its fun to play with financial calculators and see what might happen.

Assume you have just graduated from college, are about 22 years old and I just started your first real job. If you put $100 a month in an IRA that grows at 10% a year, you will have about $865,000 at age 65. 10% a year compound growth is about what you should exect if the money was invested in a no-load S&P 500 Index Fund.

So for about $23 a week or $3.30 a day you would be close to being a millionaire.

If you contributed the full $4000 a year allowed right now to an IRA (rising to $5000 in 2008), you would have $2,600,000. For about $11.00 a day, you would have a small fortune.

If you didnt want to take a chance with the stock market because it goes down sometimes, you would still have over $600,000 if you could get a 5% return.

If your grandmother leaves you $10,000 in her will and you invest it for the same 43 years at 10% without adding another cent, youd also have over $600,000 if you placed it in a tax sheltered account.

Time and the power of compound interest are on your side. So if youre in you twenties and want to get rich, do whatever you have to scrape together that IRA contribution. Every day you procrastinate is another day your money is not working for you.

However, most people in their twenties need the money for more important things, like new cars and HDTVs. You also have school loans to pay, children to raise and the new mortgage to pay off. But if you prioritize your life and stick to a budget, $11.00 a day is doable, although you might have to scrimp here and there.

Consider that most people are spending their lives paying the freight for borrowing other peoples money. If you save and invest, other people are paying you to use your money. Its a lot more fun to see your money working to help you get rich than
having to work yourself.

Think about the effect expenditures have on your financial future. If you bought a late model used car instead of new one, you would probably save $10,000 or more depending on the model. That $10,000 as noted above, would grow to almost $600,000 by the time youre 65 if invested in tax sheltered accounts.

Now look at it from the opposite angle, the extra money you spend on that new car you yearn for and must have now, will cost you $600,000 by the time youre 65
and the car has long since been recycled into tin cans.

Id probably buy the car too, but its useful to consider the consequences.

It gets harder to get rich slowly as you get older. If you wait until youre 32 and put away $4000 at 10%, you would have about $975,000, still a respectable amount.
At 42, youd only be able to accumulate approximately $350,000. If youre 50 and
can start putting $5000 away today, youll have around $175,000 at age 65.

Everyone knows that Social Security is not going to allow for a comfortable retirement. Even if the plan can continue to pay out forever, which is questionable right now, the money you receive will be far from generous and is subject to taxation. And you might have a good pension plan at work now, but will you be able to hold your current job to
retirement?

If you have a Roth IRA, you can withdraw the money tax free after age 59 . Imagine having a million tax free dollars you can play with. It will well make up for the small sacrifices you have to make to get rich.

No matter what your age, start saving what you can now – today. Even if you only amass $100,000, youll be better off than most people entering retirement.

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The home equity that we have in our possession is really the part of our home that we own. This is built by the payments that we make to our mortgage and through the appreciation of the value of our homes. This means that our home equity is often trapped and unavailable to us unless we take home equity loans or refinance our mortgage. Cash out refinancing allows us to access this equity. We are able to use this cash from the equity that we get and reinvest it into our property portfolio.

Broken down simply in the form of an example we will see how the equity is made available. Let us say that you own a home and that it is mortgaged to the sum of $200,000 and you have repaid a certain amount. Let us say that that amount is $100,000. Then you have available to you a sum of $100,000 for equity and this is money that can be utilised for your investment.

You can take the option of cash out refinancing by getting a new mortgage for your home to the original value. This means $100,000 is given to you in your hand for whatever purpose and you may have a lowered mortgage payment as well. There are many factors that will make this option a desirable one for you and you must evaluate the market circumstances as well as the personal situation that you are faced with and the purpose for which the money is intended.

Interest rates on mortgages fluctuate from time to time and it is important that this be considered as well as other factors. It can be simple for you to reach for the option of refinancing when interest rates are low but there is a factor of the expenses to consider before this is thought worthwhile and as such a balance is needed in this decision between where it is viable to refinance or not viable as the case may be.

It is up to you to do the necessary research and determine the feasibility of the option to your circumstances. The circumstances on the market will also influence the benefits or disadvantages of this type of refinancing and all this has to be considered in the decision making process. It is no easy decision to decide to refinance your property so ensure that you are fully capable of meeting the payments required and that there is little chance that you will be unable to do so. Only opt for a refinancing plan that meets your budget.

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