If you’re over 40 like myself you’ve probably constantly thought something like “I wish I knew now then what I know now.” Small amounts of money stashed away when you are young can easily give you a nice retirement boost.

Starting younger lets you take advantage of the power of compound interest. Compound interest is a simple but very powerful concept that a smart saver will want to use to their advanteage.

Putting just $50 a month into a retirement account can equal a six-figure payout when you are ready to retire.

Lexchoice crunched the numbers, and we can tell you how much investing an extra $50 a month now will yield when you are ready to retire.

Just a few things to consider: these numbers assume you put the money in a retirement account, you get a 6% return on your investments (that’s pretty conservative) and that you will retire at age 67. Continue reading for a full breakdown of how large your savings will grow over time.

Start retirement Saving at age 40: It’s never too last to start saving or retirement! Obviously, the sooner you start the better off you will be, but anything is better than nothing. Even you you start saving an additional $50/month at age 40 you would have around $40,000 extra for retirement!

Start retirement Saving at age 30: The younger you start saving the more you take advantage of the compounding interest. Start saving an additional $50/month at age 30 and you would have around $81,000 for retirement! You can see how this is starting to add up.

Start retirement Saving at age 20: If you are disciplined enough to start saving extra with your first job you’ll definitely see the power of compounding interest. Start saving an additional $50/month at age 20 and you would have around $150,000 for retirement!

To put things more into perspective if the 20 year old had stashed away $50/month for 20 years and stopped saving when they turned 40 they would have accumulated 23,395. If that money sat in a retirement account until they retired at age 67 they still would have accumulated almost $113,00! They would have only invested $12,000 during their 20 years.

The power of compounding interest is pretty amazing. Take advantage of the time you have left before retirement. I sure wish I understood this more when I was 20!!!

Buying an older house may seem like a great investment. Usually they are priced lower than a new house, especially considering the square footage. Most people consider purchasing an older home with the intention of doing some remodeling to bring restore the homes charm. This is all great but you have to consider several hidden costs that you may not thing about when buying an older home. Below are just a few things to consider before making your offer on an older home:

1. Higher Energy Bills

Check with the previous owner and get copies of their utility bills. Often times older homes often do not have air conditioning installed or if they do it may be window units. Getting a central air system installed can cost thousands of dollars. Also, heating older homes without adequate insulation can cost upwards of $300-$400 per month. If the owner is hesitant to provide you with past energy bills, beware!

2. Central Air and Furnace Units
If older homes do have central air units or furnaces check the age. If you have to replace a furnace or air unit you may immediately be out a few thousand dollars.

3. The Roof

A typical roof lasts 20 – 30 years. If you have to replace the roof again, you are looking at several thousand dollars. Not only can the materials be expensive, but sometimes previous owners layer the shingles. If the contractor has to remove several layers of shingles before a new layer can be installed you will have to pay a lot more labor costs!

4. Windows

Older homes tend to have a lot windows. If they have the original windows they are probably single pane glass windows. These type of windows provide terrible energy efficiency. If you stand next to the windows you can usually feel the outside air blowing through the edges. The cost to replace these windows can be as much as $300 to $400 per window. That’s several thousand dollars in a larger home.

65. Electrical Systems

If you are going to remodel an old home you will have to bring the electrical systems up to code. Homes build decades ago had much more lax codes and are much more susceptible to fires. Also, the insulation on old wires start to crumble over time. Replacing faulty wiring and old electrical outlets throughout the home can cost thousands of dollars.

6. Lead Paint

Before 1979, lead paint was used for both interior and exterior surfaces. Lead paint can cause health problems so it’s best to remove all traces of it before continuing to remodel. Resolving these paint issues can cost some unexpected cash.

7. Asbestos

Another hazard in older houses is the potential to encounter asbestos. Asbestos was used for insulation and may be used in old floor tiles as well. Removing asbestos can be expensive and requires special equipment and expertise.

8. Historic Restrictions

Even thought you may own the house, some older houses may be classified as historic. Because if this the city may have remodeling and addition restrictions on the dwelling to preserve the historic value. Double check with the city about these special circumstances before you make the purchase.

9. Project after Project

Owning any home will require constant upkeep and improvements. With older homes this expense and time is amplified even more. A weekend project every weekend will start to eat away at your savings and your free time.

Before making a purchase of an older home, please consider all the above hidden expenses. Always get a home inspection from an experienced, licensed inspector. Good luck with your purchase!

For some reason we’ve convinced ourselves that the decade birthdays are the “big benchmarks”, 20, 30, 40, 50, etc. Most of us develop habits that seem fine in our 20’s but, once we hit the 30 mark we realize they aren’t so flattering. You may have already heard these several times but… Financially speaking below are 5 areas of your financial life you need to clean up before age 30!

1. Use Credit Cards Responsibly

Remember when signed up for your first credit card in college? You traded your financial freedom for a free t-shirt. A few weeks later, you had maxed out your $500 limit and quickly realized you really didn’t have any way to pay that money back! Well, adults still make those same mistakes, unfortunately past the age of 30. Credit card debt is a real problem for many adults. If used responsibly credit cards can be a great too; however use them wisely. Don’t max out a credit card never use more than 20% to 30% of your limit!

2. Invest, Invest, Invest

Ideally, you will have already started investing in your retirement. However, the fact is that a small portion of us actually start when we get our first job. It’s tough for someone in their 20’s to start saving for something that’s almost 40 years away, but it’s necessary. You’ve probably already heard this but, if you have the money pulled out of your check before you get it you won’t miss it. Compounding interest works best when it has many years to compound. Invest $66 per week for 40 years and odds are you will be a millionaire when you retire!

3. Learn to create a budget and stick to it

Another tip that may seem obvious to some but difficult for other to grasp is creating a budget and actually sticking to it. Before you can get your finances in order you have to understand how much money you have coming in each month and how much money you spend each month. Creating a budget just consists of assigning into categories where the money goes each month. This will prevent you from getting to the end of them month and coming up short. Need a simple budget to get you started? Download our simple free budget.

4. You need an Emergency Fund

A good starter emergency fund should consist of about $1,000. This fund should be in an account separate from your regular checking account; however, somewhat easily accessible. A regular savings account would be a great choice. Your emergency fund should only be used… you guessed it, in case of an emergency. Pulling money from the emergency fund for a late night Taco Bell run when your checking account is empty doesn’t constitute an emergency. Although I do love some Taco Bell, you’re going to have to opt for whatever you can find in the fridge. The emergency fund can be used for car repairs, necessary home repairs, even an unexpected medical bill. However, your goal the following month/week should be to start replenishing the fund. An emergency fund helps keep your monthly budget balanced and uninterrupted.

5. Get some type of education

It’s a proven fact that on average a college graduate will earn more over their lifetime than a non-college graduate. I however am not going to push you to go to college if it’s not the right course of action for you personally. However, I would highly suggest that you get some type of education past high school. There are many options available today that can provide you with the skills to make you more marketable in the workplace. Do some research into trade schools and other online schools that can give you an edge over the competition.

Already over the 30 mark? What advice do you have for the younger crowd?