Big Savings can start with Small Investments

You can’t imagine how setting aside five dollars a week will help you to prepare for retirement, but it does. You review your budget trying to find the 10% that the experts tell you that you are supposed to put aside for investments but you can’t find it. No matter how hard you look it is elusive. This is the time that you have to determine if you have the discipline and self-control to save money. You might think that it is impossible to take aside a couple of dollars a week or even a month but it is worth it for you to try.

Most of the self-help books will tell you that you need to put aside ten percent each pay day to your retirement account, but some people do not have the money to put aside one percent let alone ten percent. But you need to take what ever amount you can afford and set it aside, if you do this you will be able to retire in comfort. Once you make a habit of setting aside the money then it will become easier. Once it becomes easier then it will be a habit that you will have for life and the earlier you start this habit the better off you will be.

Even if you are only able to set aside five dollars a week, that still amounts to $260 a year, which when you add interest to it becomes a nice nest egg for you when you retire. You should look for an account that offers a nice percentage rate and look at the interest rate a bank offers before you choose to put your money into their account. Many banks now offer less than one percent interest on your money, but if you are diligent and research into the different options you have available you should be able to find a bank with a savings account that has an acceptable interest rate for your money.

If you are able to afford more than five dollars a week then you will be able to have a large nest age, but the important thing to remember is that you need to start saving. The later you start the harder it is and the money you have lost from not investing will be gone for good. So even if you can only afford five dollars a week, set it aside and put it to work for you, instead of you working for money.