The More You Know: Great Advice for Grad & Pro 2020



Earning a little extra adds up Here’s how much you would increase your retirement savings over 20 years if you earned and extra $20, $50 or $100 per week and invested the extra cash.

Getting a “side hustle“ is another popular piece of financial advice, but hear us out: Increasing your income to add to your retirement account allows you to boost your savings without sacrificing your other expenses. Side hustling may take the form of a part-time job, freelancing gigs, selling unused items in your home or other options. For simplicity’s sake, we assumed these earnings were after-tax. If you go this route, keep in mind that most side hustles require you to report your income for tax purposes.


$20 a week



$50 a week



$100 a week


$0 $20K $40K $60K $80K $100K $120K



Source: NerdWallet analysis, assumed post-tax earnings for 52 weeks per year, compounded annually at 6%



Buying a used car instead of new adds up Here’s how much you would increase your retirement savings over 20 years if you bought used cars instead of new cars, saving $2,000 on transportation expenses per year.

A car isn’t optional in much of the U.S., but the costs can be flexible. According to auto-information site Edmunds, a new Ford F-150 can lose nearly 40% of its value — or $18,749, assuming a new purchase price of $50,154 — in the first three years of ownership. Buying a 3-year- old truck would effectively save you that money, minus perhaps some increased maintenance costs for the older vehicle.


$2,000 per year


$0 $20K $40K $60K $80K $100K $120K



Source: NerdWallet analysis, compounded annually at 6%

So let’s say you decide to save some cash by buying used cars instead of new. You shave $10,000 in depreciation by buying a 3-year-old vehicle instead of a new one every five years — for an average savings of $2,000 per year — and you repeat that pattern over the course of 20 years. That’s not the only way to save on car expenses. If you live with a partner, consider whether you need two vehicles or if it’s reasonable to share one. And in many cities it makes more sense to go without a car due to an abundance of transit options and a lack of affordable parking.



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