If you start saving early and do this on a regular basis, even little amounts of money can grow into significant retirement savings. Extra cash you save today may take years or even decades to grow before you need it for your retirement.
Try to follow the two examples below to see how saving a dollar daily could have a major effect in helping you retire with confidence.
Set Aside One Extra Dollar Per Day
To begin, set an objective of saving at least one dollar for each day. Or, on the other hand, if you’re already saving, endeavor to save one dollar more per day. If you save this $365 more than 30 years, earning an average yearly return of seven percent a year, your daily dollar commitment will grow to about $34,500. That is a significant amount of money when you consider the minimal effort required to save just one dollar per day.
Boost Savings By One Percent
You can likewise consider boosting your savings by one percent. Suppose you are focused on putting aside five percent of your income for retirement. For this case, let’s assume you began saving when you earned a pay of $30,000 per year in 1987, and your salary increased by three percent per year for 30 years. If you kept on saving five percent of your salary and earned a seven percent average yearly return, you would accumulate around $208,000 over those three decades.
What if you decide to boost your savings to six percent of your salary? Over that 30-year time frame, you would expand your savings to about $250,000. One percent of extra annual savings could mean 20 percent more in accumulated savings at the end of 30 years.
It Is Advisable to Get Started
Regardless of how little the dollar sum or how modest any extra savings may be, your patience and diligence can be rewarded. You don’t need to wait until you get a huge sum of money before you start saving. Whether it’s one dollar progressively or just one percent increase, any amount you save will help you get closer to achieving your financial goals.