Читать книгу Personal Finance in Your 20s & 30s For Dummies - Eric Tyson - Страница 34

Continually saving money on a regular basis can generate amazingly large returns.

For example, suppose you haven’t been able to save money because your spending equals your income. Further suppose you earn (after taxes) an extra $1,000 this year at a side job and you decide to save that money. In future years, you decide it’s not worth the bother to do the extra work, so you’re unable to save the money.

Now, compare that situation to one where you reduce your spending so you can save $1,000 per year every year from your employment earnings. In both cases, assume that you put the money in a savings account and earn 3 percent annually (which has actually been about the long-term average over the generations). Historically, such a return is achievable from bonds. Table 2-1 shows an example.

TABLE 2-1 Nest Egg Growth

Amount Saved	Nest Egg after 40 Years
One-time $1,000 saved	$3,260
$1,000 saved annually	$75,400

That’s quite a stunning difference, huh? And that’s just putting away the small amount of $1,000 annually and earning a modest 3 percent per year (and you can do better than that as I highlight in the next section). If you can put away $5,000 or $10,000 annually, then simply multiply the figures by 5 or 10.