The idea behind getting rich by saving is a simple one, but it's the execution that takes dedication to achieve.
Goal: To save enough money in CD's and savings accounts to sustain your living from the collected interest alone. More money saved means more interest that will be earned to make your overall savings grow exponentially. A lifetime minimum goal would probably be $500,000 in savings, though depending on when you get started you could save several million dollars. Now that may sound like a ton of money, but this sum of money is being collected over a large span of years and is partially growing by itself to reach this sum. Ideally one would start this plan when they are young and would be able to retire in anywhere from 10 to 30 years from inception.
Let's look at an example:
Say you are saving $10,000 per year at 4 percent interest.
1 Year = $10,203.24 = 2% profit
10 Years = $122,961.47 = 23% profit
20 Years = $306,394.42 = 53% profit
30 Years = $580,038.22 = 93% profit
As you can see, over time the profits from your savings increases exponentially. In this example we almost doubled our money without extra work or risk! Over time the rate of return would just get better and better. The yearly profit in year 30 from this example is about $23,000. That's a decent salary for not doing anything, don't you think? You can keep working if you'd like to boost your savings further or you could retire and live off this free yearly profit. Depending on your salary, ability to save, and interest rate fluctuations, you could save more or less than what's shown in the example. Try out this calculator to get a graphical demonstration of the power of saving.
To achieve this goal you will need to consider this your second job. Your job is now saving money and you are your own company, boss, and employee. Every dollar you save and are able to put into some sort of interest bearing account is another source of income for your business. This job is always contributing to your retirement fund. Your retirement fund is also a source of income. When you do decide to retire, that half million dollars or more is your nest egg to live free and easy on.
To get to that retirement goal you will need to become a saving dynamo. Through this site, I will share an ever-expanding list of ways ways to cut spending, save more money, and earn some extra money to get you started. So earn and save and you could finally quit your job and live off your savings' earning power. You'll need dedication, willpower, and knowledge to achieve this, but it can be done and you can be your own boss.
Goal: To save enough money in CD's and savings accounts to sustain your living from the collected interest alone. More money saved means more interest that will be earned to make your overall savings grow exponentially. A lifetime minimum goal would probably be $500,000 in savings, though depending on when you get started you could save several million dollars. Now that may sound like a ton of money, but this sum of money is being collected over a large span of years and is partially growing by itself to reach this sum. Ideally one would start this plan when they are young and would be able to retire in anywhere from 10 to 30 years from inception.Let's look at an example:
Say you are saving $10,000 per year at 4 percent interest.
1 Year = $10,203.24 = 2% profit
10 Years = $122,961.47 = 23% profit
20 Years = $306,394.42 = 53% profit
30 Years = $580,038.22 = 93% profit
As you can see, over time the profits from your savings increases exponentially. In this example we almost doubled our money without extra work or risk! Over time the rate of return would just get better and better. The yearly profit in year 30 from this example is about $23,000. That's a decent salary for not doing anything, don't you think? You can keep working if you'd like to boost your savings further or you could retire and live off this free yearly profit. Depending on your salary, ability to save, and interest rate fluctuations, you could save more or less than what's shown in the example. Try out this calculator to get a graphical demonstration of the power of saving.
To achieve this goal you will need to consider this your second job. Your job is now saving money and you are your own company, boss, and employee. Every dollar you save and are able to put into some sort of interest bearing account is another source of income for your business. This job is always contributing to your retirement fund. Your retirement fund is also a source of income. When you do decide to retire, that half million dollars or more is your nest egg to live free and easy on.
To get to that retirement goal you will need to become a saving dynamo. Through this site, I will share an ever-expanding list of ways ways to cut spending, save more money, and earn some extra money to get you started. So earn and save and you could finally quit your job and live off your savings' earning power. You'll need dedication, willpower, and knowledge to achieve this, but it can be done and you can be your own boss.
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