Success in building wealth has always started with saving. What may seem like a little can make a big difference over time if you’re able to stick to a regular savings plan.
If you have (grand)children learning about finances, the table to the right may be a worthwhile share. It shows the potential impact that just $30 per week of savings — or $1,560 per year — can have down the road based on various rates of return. It’s a good reminder of the power of time and compounding as we save for the future.
Table: How Much is $30 Per Week Worth?
|Annual Rate of Return*|
*Assumes compounding at monthly rate, no taxes or fees. For illustrative purposes only
For those wanting to save more, it may be as simple as making moderate lifestyle changes, such as reducing impulse purchases or giving up the daily designer coffee. Perhaps the pandemic has reduced your discretionary spending, and these funds can be invested to make a significant impact on your future nest egg.
As the old saying goes, “mighty oaks, from little acorns grow,” and it all starts with saving.