These days you can’t get dinner for two or fill up your gas tank for under $25. So how can saving $25 a month help you save for your future or retirement?
Slow and Steady Wins the Race
People think they don’t make enough money to put any into a simple savings account for the future, but what they forget is that over a long period of time, a little each month adds up. For example, lets say you put $100 in a savings account with an interest rate of 1.09% percent. Each month you increase the savings account by only $25. Over a period of thirty years, your savings account will have jumped from the $100 you started with to an amount just over $10,626.
For less than a tank of gas, or dinner you can have money saved for retirement. The key to saving this money, is to be disciplined. It might seem easy to save just $25 a month, but times get hard and the money can seem to run out before all the bills are paid. Luckily, with the technology of today, you can set up an automatic transfer, so you don’t even have to remember to move the money from your checking account to your savings account. Your bank will do the hard work for you, all you do is watch your account grow.
The more money you are able to put into an account monthly, the better off you will be. But, the key isn’t in the amount you put in each month, the key is to stay consistent and disciplined. Talk with your bank and set up an account to make sure you put something into your savings account each month. It might seem stressful to save now, but with an automatic transfer you relieve the stress and enjoy the savings.