The Magic of Compounding = Big $$$
Compound interest can help you have more money for retirement and other goals by starting monthly savings earlier in life, and letting it grow in smart ways.
For example, notice how the total savings grows if you saved $50 a month for the years and compound interest rates below:
- At 3% it grows to $6,988 in 10 years; $16,416 in 20; and $46,306 in 40 years.
- At 5% it grows to $7,765 in 10 years; $20,554 in 20; and $76,308 in 40 years.
- Think if you saved more than $50 each month at even higher interest rates!
Compare the above to 0% compound interest (the same as putting it in a shoebox or safe at home):
- At 0% it totals to $6,000 in 10 years, $12,000 in 20; and $24,000 in 40 years.
More about compounding is in one of the mini-lessons in the Financial Wellness Center @ _____ (your website).