Tuesday, August 26, 2014

Financial Thought of the Day August 26, 2014: Pennies Adds Up to Dollars

When it comes to saving money pennies adds up to dollars.

For example let's say you can eat at home for half the price of eating out:

Price of a fast food meal: $7.50 x 0.5= $3.75

Over a year $3.75 adds up to $1368.75 per year assuming you eat out every day.

Invest that money in a index mutual and if you get 10% per annum over the course of 30 years that will equal $23,883.87 and that's if you do it for 1 year alone.

If you get 15% per annum for 30 years that amount becomes $90,627.36.

If you are the next Warren Buffett and get 22% compound annual growth rate for 30 years and that amount becomes $533,481.12.

What bad habit could you kick today?


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