There are always a lot of questions and uncertainty when it comes to money. And, as we get older and take on more responsibilities and goals for ourselves, we immediately start thinking about how we can earn, save, and grow our money so we can get the most out of life.

How do you know if you’re on the right track at age 35? Here are some investing basics that every 35-year-old should know.

1. How Much Money Do You Need to Retire?

If you were hoping for a simple answer, it’s not that easy. Some advisors will tell you that you need $1 million to enjoy retirement while others may suggest you need much less.

The truth is that no one can tell you this without understanding your unique situation and goals. A great way to start to calculate what your finical needs will be when you retire is to use a retirement calculator.This will give you an idea of how much you need to save, based on attributes such as your current income, age and retirement age. No matter what this number is, it’s going to seem big and perhaps unachievable, but you have time on your side. Whether you need a lot or a little, saving small amounts on a regular basis can make reaching that goal easier and very rewarding.

2. How Does Compound Interest Work?

Compound interest is what helps turn those small savings deposits at the beginning of your working years into a large nest egg for retirement. As your savings grow and earn interest, you begin to earn interest on your interest.

The best way to understand compounding interest and the huge effect it can have on your savings is to play with a compound interest calculatorand see just how much of a difference saving early and often can make.

3. What Are Dividends?

Just like compound interest, dividends can help grow your investment portfolio much more quickly. There are several types of dividends and the topic is deserving of an entire article on its own.

Simply put, however, companies pay out dividends to owners of their stock. As a company pays out dividends, it’s a great idea to reinvest the money so that you can accumulate even more shares of stock and earn more dividends throughout the year.

4. What is Diversification?

In investing, diversification refers to holding a a wide variety of investments in your portfolio. This helps insulate your investments from fluctuations in the market.

Instead of putting all of your eggs in one basket, it is recommended to diversify your portfolio and reduce the risk that any one stock or industry could put a massive dent in your hard-earned savings.

We’ve Only Scratched the Surface

Can you answer all of these questions? Are you ready to take charge of your financial future? By using Evati, you can set customized goals and start saving towards those goals for as little as $1 per month.

Evati investment portfolios are made up of diversified exchange traded funds and the simplest and most affordable way to start investing. Open an account today and see how dividends and goal-based passive investing can grow your savings over time.