How earning extra money affects your retirement

Everyone should think about how they will pay for things once they retire. The common way to ensure you have money for retirement is by saving money while you are working into a savings plan. Some find that their take home pay doesn’t support saving, so taking on a part time job could be the answer you are looking for. Here comes the math: If you took on an extra job that earned you $4000 a year and saved that money for your retirement, the results would amaze you. Let’s say you are 30 years old and decide that you want to earn extra money for retirement at the age of 65. The $4000 you save per year for those 35 years at an 8% rate of interest would net you $744,408 and that’s huge! If you worked an extra 5 hours a week at a rate of $16.67 per hour, you’d cover the $4000 necessary per year for retirement, barring taxes of course. There are many ways to earn extra income for retirement and there is no better time than the present to start.