Why does the small business owner avoid thinking about retirement planning? Two vivid reasons come to mind: 1) lack of cash, and 2) they assume there is plenty of time, so it can be deferred until the proverbial "tomorrow." Wrong, Wrong, Wrong! The following Table illustrates why "later" is such a drastic mistake.

Savings Goal	Time Frame	Necessary Investment
$250K	30 years	$168/month
$250K	20 years	$424/month
$250K	10 years	$1,367/month
$250K	5 years	$3402/month

Based upon an assumption of equal monthly installments earning 8% compounded monthly over the stated periods.

The two middle examples depict the different monthly investment between a 40-year-old and a 50-year-old to achieve the same amount by age 60. The latter requires over three times as much as the former.

This next example displays the value of time, and what a difference "time" can make in our investment strategies. An early saver deposits $1,000 a year ($83.33 per month) at 8% for just 10 years- nothing more is saved. A late starter does not save anything for ten years and then begins $1,000 a year savings program for forty years. Hence the late saver does not attain the same goal, as Table 2 exhibits.

Year	$1K Deposit @ 8%	Zero Deposit
1 5 10	$1,083 $6,397 $15,939	0 0 0
Year	Build @ 8%	$1K Deposit @ 8%
11 20 30 40 50	$17,267 $35,471 $78,934, $175,656 $390,895	$1,083 $15,939 $51,939 $130,344 $306,000

Now to the topic of "not enough cash" or even worse "no cash". Turn the negative around to the following mantra: " A part of all I earn is mine to keep," and make it real.

The next step requires payment to yourself first. This is a toughie, and may need a concerted effort to "find" money for savings. Here are a few ideas:

• When your prices are raised, save the difference. This is the self-employed equivalent to the employee's " when I get a raise, save it".
• Examine current outgo for an area with excessive or unnecessary spending. For example: brown bag lunch one day a week versus buying lunch, or one less dining-out monthly expense, or buying clothing more selectively and fewer times during the year.
• Place change in a jar daily; I do and save about $500 a year.
• Save a tax refund.
• Use grocery coupons and drop the coins in a savings jar.
• Get a rebate on a purchase, and place this into the jar.
• Take $5 from every ATM withdrawal and give it to the jar.

The third step is: don't waste energy on worrying about not doing anything before; just resolve to do something now! (And then Do It.)

©1996 Fran Roth