Disciplined Saving and Smart Investing Will Increase Your Nest Egg

The key to accumulating money is a systematic savings and investing program. Putting aside money every pay check and then investing it wisely ensures that you will build a sizable pile of money over time.

Suppose you begin you first job making $50,000 a year and you save five percent of your gross salary each year. Further assume that your salary increases three percent each year.

The following table shows how much money you would accumulate given an annual return on your savings of six percent or eight percent.

Total Dollars Accumulated - 5% Savings Rate
Years	6% Return	8% Return
10	$37,244	$40,750
20	$116,752	$142,742
30	$276,352	$381,770
40	$585,307	$923,124
50	$1,169,687	$2,125,885
Note: If you saved 10 percent, the dollar amounts would double.

This simple example shows the power of saving and investing for many years. If you have the discipline to stick to a systematic savings and investing program, time will ensure that you will accumulate lots of money. And if you are a savvy investor and can achieve higher returns on you investments, you can significantly increase you total accumulation.