Money, Money, Money - Not a day goes by that I'm not thinking about money. It has always been of interest to me, particularly over the course of the last four years as I have had the honor to serve as your State Treasurer. There is no doubt money management is essential these days and I've made it a priority to initiate several financial education opportunities for all Kansans. That's why I was pleased to read, "Start your first $1 million at age 16" on MSNMoney.com.
The article, written by Scott Burns, described that a $2,000 investment into a Roth IRA from a 16 year-olds summer job that is invested in common stocks with an average compound annual rate will be worth $1,114,423 in 51 years. Of course factors that may impact the financial markets need to be taken into account, but the premise behind the article is interesting and powerful.
The article has good advice for all of us whether we have a 16 year-old in our home or not. It demonstrates that $1 million isn't going to just appear overnight. The author likened it to losing weight. Those extra ten pounds we all gain during the holiday season take no time at all to put on, but will take until Independence Day to lose!
Just like earning $1 million, true financial security takes time and effort. It isn't easy and we have to consider the influence our "I want it now" society has on our spending practices. On a daily basis I receive credit card offers with zero percent interest guaranteed, offers from mortgage companies to refinance my home for little or no interest and other "too good to be true" financial opportunities!
What I've learned during my life is that it is the little things that increase my checking account balance. Easy things like clipping coupons, bringing my lunch to work, eating at home one more night a week. But then there are the not so easy things like saying no to my kids when they think they absolutely, positively need another pair of shoes or video game that help keep my checking balance healthy.
With the end of the year quickly approaching, this is the time to think about new strategies to reduce spending and increase savings. Look at it as a New Year's resolution that will pay YOU back! There are many resources available to help you manage your financial resources and make your money work for you. I encourage you to visit my web site, www.KansasStateTreasurer.com, to sign-up for the free monthly financial newsletter, MoneyWise; our step-by-step guide to financial planning, Tomorrow's Money; and a number of financial literacy efforts geared to elementary and middle school aged children.
It is an honor to serve as your Kansas State Treasurer. If there is anything that I can do for you, please feel free to contact me.
