Is It Difficult to Save?

Why do we save in the first place? Maybe to buy a car, a house or for early retirement, but for whatever reason we all save for something.

But the question is, “Is it difficult to save?” I guess that depend on the individual. Some people believe you need to have a lot of money before you can begin saving. But I don’t believe that. I believe that if you have the will to save, you will find a way. If you wait for your wallet to get fat then begin, technically you are losing out. Because half of the time you are spending that money and most of the time you don’t even know where you spend it on.

So either way it is being wasted, so why not put some of it away. I’m not talking about a lump sum amount but more of a gradual thing. Most of us know the meaning of compounding. For those who do not, here is an example of what I am talking about.

Let say your initial amount is $500 and you put it in a traditional saving account with an interest rate of 3%. According to what my bank had told me, if the Fed have not cut the interest rate, it would have stayed 5%. Since this article is not about the Fed, I won’t put my two cents in.

The math would look something like this:
Initial: $500 * .03 = $15.00
Total: $515
Second Year: $515 * .03 = $15.45
Total: $530.45

It doesn’t look much now but over a longer period, you’ll see the difference. Hopefully you will continue to add money in each month and if you don’t, that’s okay too, only if you don’t withdraw prematurely.

Sorry to say this, most people want instant gratification but unless you win the lottery, wealth takes time to accumulate.

I find the easiest way to begin is to have the money automatically withdraw, this way you don’t even know it is missing. You don’t have to start out big, even $50 dollars is better than nothing. So I say to all of you, start getting fat money and happy saving…..

Written by Leah (Thanks)

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April 2, 2008 | Filed Under Money Saving Ideas 

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3 Responses to “Is It Difficult to Save?”

  1. Passive Income: Earn More Money With Little Effort : GetFatMoney.com on April 16th, 2008 3:12 pm

    […] Is It Difficult to Save? […]

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