Dimes to Dollars

So, if you’ve read tips on saving money on groceries or dining, hopefully you’ve committed to saving at least $20 a week.  This is relatively easy on nearly any budget.  Below is a chart of what $20/week can do for you.  The first table is just the saving.  The second is a simple savings account.  The third table is a higher earning Roth IRA.

Dollars Saved Year 1 Year 2 Year 3 Year 4 Year 5
Month 1 $           80.00 $ 1,120.00 $ 2,160.00 $ 3,200.00 $ 4,240.00
Month 2 $           80.00 $ 1,200.00 $ 2,240.00 $ 3,280.00 $ 4,320.00
Month 3 $         100.00 $ 1,300.00 $ 2,340.00 $ 3,380.00 $ 4,420.00
Month 4 $           80.00 $ 1,380.00 $ 2,420.00 $ 3,460.00 $ 4,500.00
Month 5 $           80.00 $ 1,460.00 $ 2,500.00 $ 3,540.00 $ 4,580.00
Month 6 $         100.00 $ 1,560.00 $ 2,600.00 $ 3,640.00 $ 4,680.00
Month 7 $           80.00 $ 1,640.00 $ 2,680.00 $ 3,720.00 $ 4,760.00
Month 8 $           80.00 $ 1,720.00 $ 2,760.00 $ 3,800.00 $ 4,840.00
Month 9 $         100.00 $ 1,820.00 $ 2,860.00 $ 3,900.00 $ 4,940.00
Month 10 $           80.00 $ 1,900.00 $ 2,940.00 $ 3,980.00 $ 5,020.00
Month 11 $           80.00 $ 1,980.00 $ 3,020.00 $ 4,060.00 $ 5,100.00
Month 12 $         100.00 $ 2,080.00 $ 3,120.00 $ 4,160.00 $ 5,200.00
Total $     1,040.00 $ 2,080.00 $ 3,120.00 $ 4,160.00 $ 5,200.00
$ Saved w/Interest – Compounded Monthly @ 1.75%
Dollars Saved Year 1 Year 2 Year 3 Year 4 Year 5
Month 1 $           80.00 $ 1,129.66 $ 2,197.57 $ 3,284.06 $ 4,389.44
Month 2 $         160.12 $ 1,211.28 $ 2,280.73 $ 3,368.78 $ 4,475.75
Month 3 $         260.35 $ 1,313.02 $ 2,384.01 $ 3,473.62 $ 4,582.19
Month 4 $         340.72 $ 1,394.91 $ 2,467.44 $ 3,558.62 $ 4,668.78
Month 5 $         421.21 $ 1,476.92 $ 2,550.99 $ 3,643.74 $ 4,755.49
Month 6 $         521.82 $ 1,579.04 $ 2,654.65 $ 3,748.98 $ 4,862.33
Month 7 $         602.57 $ 1,661.31 $ 2,738.47 $ 3,834.37 $ 4,949.32
Month 8 $         683.43 $ 1,743.70 $ 2,822.41 $ 3,919.88 $ 5,036.44
Month 9 $         784.41 $ 1,846.21 $ 2,926.47 $ 4,025.52 $ 5,143.68
Month 10 $         865.54 $ 1,928.86 $ 3,010.68 $ 4,111.31 $ 5,231.08
Month 11 $         946.79 $ 2,011.64 $ 3,095.01 $ 4,197.22 $ 5,318.60
Month 12 $     1,048.15 $ 2,114.53 $ 3,199.46 $ 4,303.25 $ 5,426.25
Total $     1,048.15 $ 2,114.53 $ 3,199.46 $ 4,303.25 $ 5,426.25
$ Saved w/Interest – Contributed to a Roth IRA @ 5%
Dollars Saved Year 1 Year 2 Year 3 Year 4 Year 5
Month 1 $           80.00 $ 1,147.87 $ 2,269.60 $ 3,447.92 $ 4,685.69
Month 2 $         160.33 $ 1,232.58 $ 2,358.93 $ 3,542.09 $ 4,784.94
Month 3 $         260.99 $ 1,337.65 $ 2,468.62 $ 3,656.65 $ 4,904.61
Month 4 $         342.06 $ 1,423.15 $ 2,558.77 $ 3,751.68 $ 5,004.76
Month 5 $         423.47 $ 1,509.00 $ 2,649.28 $ 3,847.10 $ 5,105.33
Month 6 $         525.21 $ 1,615.20 $ 2,760.17 $ 3,962.91 $ 5,226.31
Month 7 $         607.36 $ 1,701.83 $ 2,851.52 $ 4,059.19 $ 5,327.79
Month 8 $         689.86 $ 1,788.83 $ 2,943.23 $ 4,155.87 $ 5,429.68
Month 9 $         792.70 $ 1,896.18 $ 3,055.33 $ 4,272.95 $ 5,552.00
Month 10 $         875.95 $ 1,983.97 $ 3,147.89 $ 4,370.51 $ 5,654.81
Month 11 $         959.55 $ 2,072.13 $ 3,240.82 $ 4,468.47 $ 5,758.05
Month 12 $     1,063.50 $ 2,180.64 $ 3,354.14 $ 4,586.84 $ 5,881.72
Total $     1,063.50 $ 2,180.64 $ 3,354.14 $ 4,586.84 $ 5,881.72

			
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Not a F.I.R.E. Path

There are so many sources out there for F.I.R.E. (Financially Independent Retire Early) with stories of those in their 20’s, 30’s, or early 40’s who achieved this status with some discipline.

THIS BLOG IS NOT ABOUT THEM OR HOW TO ACHIEVE IT.

Many of us just aren’t able to achieve that.  Maybe our incomes were too low in our 20’s or we weren’t college educated.  Maybe we encountered life altering financial burdens (death of a spouse/partner, long-term loss of a job, or serious health condition without insurance).  It is my sincere hope that this serves as an idea and information exchange of ways that you can turn your finances around.  Maybe you can’t incorporate all the ideas, but lasting change happens in small steps.  Small steps that are taken and then become habit can encourage similar behaviors.

Take the next step and click on an article.  Hopefully there is a tidbit that will have value to you or seem realistic.