Save a Little, Get a Lot

Should you spend your money now or save it for the future? That's the dilemma many people face each day. For many people spending is easy but saving is hard. Not because they can't afford to save - they simply prefer to spend their money. But before you spend you last nickel, consider the following modest savings program.

Start by saving $100 each month. You could easily spend this amount of money and at the end of a year you would have no idea how you spent it, much less have anything tangible to show for it. But if you set aside $100 each month for 50 years, and at the end of each year you invest the $1,200 at five percent, your $60,000 ($1,200*50) of savings would be worth $251,217.59. The same savings schedule executed for 65 years yields $548,157.61.

Just a little bit of planning, disciplined savings and investing, time and compound interest results in a comfortable nest egg.

Use the Recurring Investment Calculator - Watch Your Money Grow to see how you can grow your nest egg with regular investments each week, month or once a year.

Updated December 17, 2007.