By setting aside money regularly, you will be able to solve most of your financial problems. A monthly savings program will give you confidence in your ability to handle an unexpected financial emergency and help educe your stress. You can amass thousands of dollars over time by setting aside a few dollars a day and allowing that money earn money. For example: you can save up to $10,000 in cash in 5 years by saving and investing only $133 each month if the money earns 7% on average; that’s less than $34 a week or the cost of a dinner for two.
When your interest earns its own interest-the earlier you start saving, the less you’ll have to set aside each month or year to reach your goals. Financial advisers often say you should start saving for retirement as soon as you start working and you should begin putting money away for college right after your child is born.
he first way to begin boosting your savings is finding more cash to save. The best way to do that is to get rid of all or most of your high-interest rate debt. The reason is obvious: you will never get anywhere earning 3% on your savings while you are paying creditors 17%. Try to fully pay off your loans and credit debt with the highest interest rates as quickly as your able.
This example below will show you how your money can grow in 20 years; if you do this on a weekly basis and are earning at a 7% interest. In 5 yrs. at $ 1 a week you save $ 319 – at $ 5 you save $ 1,597 In 10 yrs. at $ 1 a week you save $ 796 – at $ 5 you save $ 3,979 In 15 yrs. at $ 1 a week you save $ 1,506 – at $ 5 you save $ 7,530 In 20 yrs. at $ 1 a week you save $ 2,566 – at $ 5 you save $ 12,828 That’s $ 12,828 you saved by only saving $ 5 a week for 20 years. If you could save $20 a week for 20 years, you will have accumulated $51,310. The more you can afford to put away weekly, the higher those numbers go.