{"id":107,"date":"2017-07-14T17:14:33","date_gmt":"2017-07-14T17:14:33","guid":{"rendered":"http:\/\/mikewilding.com\/?p=107"},"modified":"2017-07-14T17:14:33","modified_gmt":"2017-07-14T17:14:33","slug":"put-savings-in-my-budget","status":"publish","type":"post","link":"https:\/\/mikewilding.com\/index.php\/2017\/07\/14\/put-savings-in-my-budget\/","title":{"rendered":"Put Savings in My Budget"},"content":{"rendered":"

So now you have cut back in your budget enough that you have a smidgen left that you are thinking about savings. That is terrific! There are lots of people who think they have to put literally thousands of dollars away into saving to get to where they want to be when they retire. But what most people don’t get told about or understand is that simply putting as little as $200 a month into savings can bring you just over $1,000,000 for retirement.<\/p>\n

HOW you ask? This can be done through a concept many people are never shown or understand once they are told. This concept is called ‘Compound Interest’. What happens is you make interest on interest. How this happens is, you put your $200 into savings every month or $2400 yearly and then on the interest period, they add the interest to the base amount from before the interest is added. Then the added interest now becomes included in the base amount for the next period of interest. This makes the amount of interest you receive go up by the interest rate. As this progresses, you start making interest on the interest, on the interest and so on, making it compound<\/strong><\/span> over the years.<\/p>\n

So what do I do with my money? Interest rates are basically non existent right now with regular savings accounts. I say this because inflation is up around 2.1% and regular savings account is only 0.5%. So leaving money in a regular savings account is a financial loss on a yearly basis. But you have financial institutions that know what they are doing and are capable of bringing you an average interest rate of 10%. This interest rate now allows, over the course of your working years, your smidgen of savings to provide you with the retirement amount you are looking for. Below is a table showing the total for each year that you would have:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Percent<\/td>\n10%<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
Year<\/td>\n<\/td>\nYear<\/td>\n<\/td>\n<\/tr>\n
1<\/td>\n\u00a0$\u00a0\u00a0\u00a0\u00a0 2,400.00<\/td>\n21<\/td>\n\u00a0$\u00a0\u00a0\u00a0 153,606.00<\/td>\n<\/tr>\n
2<\/td>\n\u00a0$\u00a0\u00a0\u00a0\u00a0 5,040.00<\/td>\n22<\/td>\n\u00a0$\u00a0\u00a0\u00a0 171,366.60<\/td>\n<\/tr>\n
3<\/td>\n\u00a0$\u00a0\u00a0\u00a0\u00a0 7,944.00<\/td>\n23<\/td>\n\u00a0$\u00a0\u00a0\u00a0 190,903.26<\/td>\n<\/tr>\n
4<\/td>\n\u00a0$\u00a0\u00a0 11,138.40<\/td>\n24<\/td>\n\u00a0$\u00a0\u00a0\u00a0 212,393.58<\/td>\n<\/tr>\n
5<\/td>\n\u00a0$\u00a0\u00a0 14,652.24<\/td>\n25<\/td>\n\u00a0$\u00a0\u00a0\u00a0 236,032.94<\/td>\n<\/tr>\n
6<\/td>\n\u00a0$\u00a0\u00a0 18,517.46<\/td>\n26<\/td>\n\u00a0$\u00a0\u00a0\u00a0 262,036.24<\/td>\n<\/tr>\n
7<\/td>\n\u00a0$\u00a0\u00a0 22,769.21<\/td>\n27<\/td>\n\u00a0$\u00a0\u00a0\u00a0 290,639.86<\/td>\n<\/tr>\n
8<\/td>\n\u00a0$\u00a0\u00a0 27,446.13<\/td>\n28<\/td>\n\u00a0$\u00a0\u00a0\u00a0 322,103.85<\/td>\n<\/tr>\n
9<\/td>\n\u00a0$\u00a0\u00a0 32,590.74<\/td>\n29<\/td>\n\u00a0$\u00a0\u00a0\u00a0 356,714.23<\/td>\n<\/tr>\n
10<\/td>\n\u00a0$\u00a0\u00a0 38,249.82<\/td>\n30<\/td>\n\u00a0$\u00a0\u00a0\u00a0 394,785.65<\/td>\n<\/tr>\n
11<\/td>\n\u00a0$\u00a0\u00a0 44,474.80<\/td>\n31<\/td>\n\u00a0$\u00a0\u00a0\u00a0 436,664.22<\/td>\n<\/tr>\n
12<\/td>\n\u00a0$\u00a0\u00a0 51,322.28<\/td>\n32<\/td>\n\u00a0$\u00a0\u00a0\u00a0 482,730.64<\/td>\n<\/tr>\n
13<\/td>\n\u00a0$\u00a0\u00a0 58,854.51<\/td>\n33<\/td>\n\u00a0$\u00a0\u00a0\u00a0 533,403.71<\/td>\n<\/tr>\n
14<\/td>\n\u00a0$\u00a0\u00a0 67,139.96<\/td>\n34<\/td>\n\u00a0$\u00a0\u00a0\u00a0 589,144.08<\/td>\n<\/tr>\n
15<\/td>\n\u00a0$\u00a0\u00a0 76,253.96<\/td>\n35<\/td>\n\u00a0$\u00a0\u00a0\u00a0 650,458.48<\/td>\n<\/tr>\n
16<\/td>\n\u00a0$\u00a0\u00a0 86,279.35<\/td>\n36<\/td>\n\u00a0$\u00a0\u00a0\u00a0 717,904.33<\/td>\n<\/tr>\n
17<\/td>\n\u00a0$\u00a0\u00a0 97,307.29<\/td>\n37<\/td>\n\u00a0$\u00a0\u00a0\u00a0 792,094.77<\/td>\n<\/tr>\n
18<\/td>\n\u00a0$109,438.02<\/td>\n38<\/td>\n\u00a0$\u00a0\u00a0\u00a0 873,704.24<\/td>\n<\/tr>\n
19<\/td>\n\u00a0$122,781.82<\/td>\n39<\/td>\n\u00a0$\u00a0\u00a0\u00a0 963,474.67<\/td>\n<\/tr>\n
20<\/td>\n\u00a0$137,460.00<\/td>\n40<\/td>\n\u00a0$ 1,062,222.13<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

So now you have cut back in your budget enough that you have a smidgen left that you are thinking about savings. That is terrific! There are lots of people who think they have to put literally thousands of dollars away into saving to get to where they want to…<\/p>\n","protected":false},"author":2,"featured_media":131,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-107","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money"],"_links":{"self":[{"href":"https:\/\/mikewilding.com\/index.php\/wp-json\/wp\/v2\/posts\/107","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mikewilding.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mikewilding.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mikewilding.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/mikewilding.com\/index.php\/wp-json\/wp\/v2\/comments?post=107"}],"version-history":[{"count":5,"href":"https:\/\/mikewilding.com\/index.php\/wp-json\/wp\/v2\/posts\/107\/revisions"}],"predecessor-version":[{"id":117,"href":"https:\/\/mikewilding.com\/index.php\/wp-json\/wp\/v2\/posts\/107\/revisions\/117"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mikewilding.com\/index.php\/wp-json\/wp\/v2\/media\/131"}],"wp:attachment":[{"href":"https:\/\/mikewilding.com\/index.php\/wp-json\/wp\/v2\/media?parent=107"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mikewilding.com\/index.php\/wp-json\/wp\/v2\/categories?post=107"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mikewilding.com\/index.php\/wp-json\/wp\/v2\/tags?post=107"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}