Focus on the big picture, get a savings account with a good interest rate and try and set aside a certain amount of money each month. Even if you’re only putting in $50 a month, it still adds up over the course of a few years. Figuring out just how much you’ll have put into saving, but figuring out how much you’ll have made from interest is somewhat more time consuming, so here’s a simple way to figure out just how much money you might save over an extended period of time.
Savings growth calculator after the jump.
The Calculator
Fantastic, isn’t it? Take 15 minutes to sit down and figure out how much you can comfortably put into savings each month and then shop around for a bank with a good interest rate. I currently have a checking account with a local bank and a savings account with e*trade which has an interest rate of 5% which is one of the highest rates on a savings account I could find, plus it has no maintenance fees and no minimum account balance. I can also transfer money to and from my checking account at my local bank.
If you have a budget set up, add the amount you’ve decided to save to that budget. Treat it like it’s a monthly bill that you have to pay, don’t skip any months, or spend your savings on something you don’t really need. If you don’t have a budget set up yet, do so as quickly as possible, it’s one of the best things you can do to insure your financial well being… that is assuming you can adhere to it.
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nikki on September 24th, 2007
i just had to figure this out for my (mandatory!!!) retirement account for the state. they have a good interest rate and even though i’m not even vested yet (it’d be at 140%, so it really stinks that i don’t get any of that action) i’ll have almost 22k if i don’t take it out til i’m 65. that’s with only 1700 as my initial amount. pretty sweet i think. but the bad part is i get penalized like 35% if i want any of MY! OWN! MONEY! from the account before i’m 59. compound interest is so great.