Simple Savings Estimator
Have you ever wondered how much money you’ll have if you put away a certain amount of money each month? We’ll help you answer that question with our simple savings estimator.
Saving for Your Goals
Developing the discipline to set aside money for savings every month offers a great deal of difficulty for many. One reason for this difficulty, at least for some individuals, is they look at the interest rate on a savings account and believe that saving will not result in much until decades have passed.
The idea that saving is only beneficial over the long-term is widely held, and this is an unfortunate circumstance considering it is totally mistaken. The results of consistently saving on a monthly basis that can be seen in as little as five years make taking a hard glance at a monthly budget – or finally making a monthly budget – worthwhile.
In order to demonstrate the point, let’s say you go to your bank tomorrow and open a savings account with $100. Just as an example, assume the interest rate you receive for this account is .75%. At this point, you get distracted by life and completely forget about the account and the money you deposited for 5 years. When you check in to see how your savings are progressing, you will observe a balance of $103.82.
To those readers who are vastly unimpressed so far, I agree with you. However, imagine instead that you remembered your new account after only a month and, after all the bills were paid, you deposited another $25, and continued to deposit just $25 every month for the same 5-year period. When you look at the balance this time, the balance will read $1,632.78.
By taking a small amount on a monthly basis and setting it aside, you will find that it grows quickly, and as it grows the amount of interest it earns will get larger as well. In the end, you only lose a few bucks each month if you try, but what you gain through your patience is far more worthwhile. We hope you’ll find the calculator helpful and are able to meet your goals.