Thursday, November 1, 2007

Affiliates, think of your pension

For people working with affiliate marketing, it is important to remember putting money aside. There will be a time when you no longer wish to work with affiliate programs – either due to old age and retirement, or due to some other reason. When that day comes, those who have put money aside will find themselves smiling all the way to the bank, while those who have nothing saved will have to make a living some other way.

For many, affiliate marketing is a way to be your own boss, instead of working nine to five for someone else. Just as you are in charge over your time, work and money, you will have to look at your potential pension and savings. There day when you no longer wish – or can – work with affiliate marketing will be sure to come. The question is: When?

In many countries, people who work full time have a pension plan already. Often it is the government making the decision for you, in other cases it’s the company in question. For these people, thinking and planning for your pension may seem odd when in your thirties, but for people not automatically included, it is highly important.

Some people work full time and use affiliate programs only to make some extra money, while others work only with affiliate marketing to make their living. People having a day job will often be part of a pension plan, but would be wise to save some of the affiliate commission for the retirement.

Depending on where you live, there are many possible ways of saving for your pension. If you have an interest in the stock market and investing, perhaps you can set up your own, private pension fund. If not, the companies willing to aid you are numerous. Just make sure you look at all the options.

The key factor is to start saving early. The impact of interest over time is greater than most people imagine, getting a head start will make your pension so much easier to live on when the time comes.

People working with stocks, bonds and other kinds of investments would tell you that the average rise in stock indexes is 7 percent a year. Of course this isn’t necessarily true each year, but over time this is what one should expect.

To calculate how much your savings will grow, an easy rule of thumb is that the money invested will double in 10 years. Invest a thousand dollars today, have two thousand for your pension – if you retire in ten years that is.

When saving money on a regular basis – most often a monthly deposit – you will see your money grow to a very nice amount over the years. Saving $100 every month will end you up with;

After 10 years, you will have over $17.000 saved for your pension

After 20 years, you will see yourself with over $50.000

After 30 years you will have saved up the nice amount of $117.000, not bad at all.

No matter how you do it, saving for your pension is essential if you are working solely with affiliate marketing. The sooner you start, the better.

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