If you want to:
- Set aside money for emergencies
- Make a major purchase
- Take a nice vacation
- Pay for a child’s education
- Prepare for retirement
. . . you must save some of the money you earn instead of
spending it right away. The easiest way to save is to put an
amount each month in a savings account as soon as you get paid
and before you have a chance to spend it on something you don’t
really need.
Think about this: If you set aside just $10 a week starting when
you are 25 and put it in an account earning 4 percent compound
interest, you will have saved about $2,800 by the time you are
30, about $16,000 at age 45, and about $40,000 at age 60. If you
save more than $10 a week or earn more than 4 percent, you will
save much more over time.