When managing one’s personal finances, it can be easy to focus too intently on the short-term needs or financial goals an individual may have.
This is only human, and we all tend to gravitate toward the big goal which may be right in front of us (and if it is paying off that credit card, then rightfully so – stop reading now and that work on that first before worrying about any long-term investments).
That said, even for those with looming short-term financial issues to take care of, ignoring one’s retirement needs could be very costly decades down the road. This is mainly due to the power of compound returns over a long period of time.
There are far too many books written on the subject, so I will encourage all investors to read up as much as possible on the topic to learn more. An investment today which is not touched or meddled with for decades (in a diversified portfolio, of course) is one of the best ways to grow one’s wealth and ensure a better-than-hot-dogs-and-Kraft-dinner existence.
Stashing away anything that is manageable, preferably on a regular schedule (most banks offer a monthly contribution option to a TFSA or RRSP or both) is a great way to go.
By viewing such a contribution as a monthly expense that must be paid in the same way as a cell phone bill, one can ensure that portfolio gains will be much greater over the long-term than an “invest tomorrow” or lump-sum investment strategy.
Invest wisely, my friends.
