Saving money can seem hard but the sooner you get started, the sooner you can start earning interest. When you put your money into a savings account or investment account, you will be rewarded by earning a percentage of the balance each year. The longer you keep your money in, the greater the effect of compounding interest.
If you are having trouble saving, try a few of the tips below:
- Drop Bad Habits: If you have a bad or unhealthy habit, like smoking or drink a lot of soda, try cutting what you consume by half. You’ll be amazed at just how much money you’ll save, and that amount can be used to start saving.
- Spare Change: Collect your spare change and exchange it for cash to add small amounts to your account.
- Use Coupons: If you cut coupons and save $5, it is not really “saving” if you do not tuck it away. After grocery shopping, transfer the money you saved from coupons into your savings account or investment account.
Automate Small Amounts: Many online banks will let you move small amounts weekly. Try transferring just $5 a week into your account. Each month, up the weekly contribution by just $1. You’ll be surprised how quickly the amount adds up and how little you miss those extra dollars when they are automatically withdrawn.
Use this interest savings calculator to find out how your contributions can build up over time. Simply enter your current balance, planned monthly contributions, the number of years you will be contributing for, your expected annual return, and your compounding interval to see how much you will earn over time.