The Deep $acrifice

The Deep $acrifice

The younger you do this the better of you are. Let’s say that you are 25 and manage to save $5,000 a year. Now that might sounds like its a lot but try to do it in small portions it’s achievable by sacrificing $416 month. Try to run the same strategy for 5 years, now I know this is really hard but the outcome will be amazing.

There are multiple ways to do that, let’s use the part time job scenario, even if you are making $97.00 a week in that job, the goal is to save, if you stick to the plan that goal is achievable. I understand free time will be limited, there will be more time later for concerts and other stuff. Just keep reminding yourself that’s only a 5 years commitment.

This is the kind of commitment you need because it will give you a huge step towards your retirement. 25 year-olds do not think about retirement, I didn’t think about it until I turned 30 so that’s a good head start if parents can start it or help their kids achieve this it will be very beneficial. Now after 5 years saving of $5,000 which give you $25,000 invest it in an index funds more precisely S&P 500 Index Fund and ignore it until you are 65 a saving of 40 years.

Now think about any other investments that pay out could be if you earn a 7 percent annual return, which is $1750 annual interest × 40 years will have over $70,000 upon retirement plus the initial $25,000 you invested. As long you don’t touch that money and let it grow and compound interest grows and keep growing

Always remember to retire comfortably you’ll need multiple sources of income let that one be one of them.

Multiply your penny

I’ve been snooping around looking for other ways to increase my income, I’m not talking about a part time job, it’s time you let your money work for you, even if it doesn’t make much. At the end of the day every little bit count.

If you don’t want any long term commitment with CD’s, but desire easy access to your money than online banking is the best way to go. They are increasing interest rate rapidly as there is a lot of competition they want your business.

Northfield Bank, Platinum Savings – 2.25% APY, When we are talking about money I think it’s always good to use real numbers so you can see the potential gain from this. From your local bank you probably have $10,000.00 in your savings, chances are you only receiving 0.01% APY. Math time now with 0.01% of $10000 = $1 that’s all you get for the year or $0.08 monthly. That’s sounds like a joke right?

Now let’s say you were able to get 2.25% of $10000 that’s $225 for the year or $18.75 monthly it probably don’t seems much but compare it to the numbers above and one more thing since it’s compound interest every month the amount will go higher because of the $18.75 more, the following month won’t be the same.
Get money get money get money….

As you prepare for retirement every little bit count, little saving around your 20’s over time can accumulate to big pay day when you reach 65 if you decide to retire at that age. In future blogs I will discuss the advantage of multiple legs income, and how to make the best of your money while living the good life.

Below is a list of Banks with good APY

1. Purepoint financial 2.15% APY
• Type: Savings
• To open: $10,000
• Check writing: No
• No Monthly Fees

2. Citizens Access 2.12% APY
• Type: Savings
• To open: $5,000
• Check writing: No
• No Monthly Fees

3. Goldman Sachs 1.95 APY
Type: Savings
To open: $1
Check writing: No
No Monthly Fees

4. American Express 1.90 APY
Type: Savings
To open: $1
Check writing: No
No Monthly Fees

Easy/Free Money

When people mention the word saving, now a days most people will look at you like you are crazy. But little do they know, saving is not just a chunk of money that you decide to put away, it’s every penny that accumulate to a dollar.

We often says we don’t have enough money or we can barely make it with our paychecks. But somehow we manage to buy latest Iphone. Often, we don’t take full advantage of the FREE money in front of us, yes I just said FREE money. No, I’m not talking about the dollar bill you found while cleaning your couch, I’m talking about money that your employer match on, things like 401(K).

Let’s talk numbers. For example let’s say you make $25000 a year and 3% of that go towards your 401(K) in a year you’ll have $750 which you won’t even notice coming out of your paycheck. Now let’s say your employer match that 3% which will give you $1500 before growth. We are not done yet, there is still potential for more chances for you to notice how your investment might grow about 7% which will give you a $105 on your investment monthly! Now that’s letting your money works for you.

In a year that’s $1260 growth/interest + your $750 initial investment + your employer $750 equal to $2760. I can’t stress it enough you need to grab that easy/free money.

Money don’t sleep, why should you?