OMG I have to share this with you guys if you want to have a lot of money in the future .This article on yahoo.com will help you make it happen the title is "Turn Small Savings Into a Big Nest Egg"
Financial ScenariosSaving money and diverting cash away from unnecessary frills and wasteful spending into investment payments such as the stock market translate to huge differences in the size of one's retirement savings over the course of a lifetime. When you purchase a bicycle or go out for a lavish dinner, you are not simply incurring a cost of that bike or dinner (say $100). The amount of the receipt is actually misleading. When you incorporate the basic laws of finance, the opportunity cost of that $100 is much more.
If you eliminate $100 of wasteful spending per month and instead channel that cash to an investment vehicle that yields an annual interest rate of 10%, that translates to more than $75,000 over 20 years, and more than $500,000 over the course of 40 years. Granted, the buying power of figure is chewed up by inflation, but the prudent person still reaps the benefits of not wasting cash on unnecessary things.
Starting principal balance: $0
Monthly investment payments: $100
Interest rate: 10%
Future value: 20 years = $75,936
Future value: 40 years = $632,408
Starting principal balance: $0
Monthly investment payments: $250
Interest rate: 10%
Future value: 20 years = $189,842
Future value: 40 years = $1,581,019
If someone were motivated enough to find $500 a month and put it away in the form of investment payments, the results lead to an exponential increase in comfort during one's retirement. With an annual rate of return of 10% over 40 years, the figure approaches $3 million for your nest egg.
Starting principal balance: $0
Monthly investment payments: $500
Interest rate: 10%
Future value: 20 years = $379,684
Future value: 40 years = $3,162,039
How much more would your nest egg be if you work for a company that matches your 401(k) dollar for dollar up to a certain amount? Given that the federal government's social safety net programs such as Social Security and Medicare are expected to hit fiscal challenges as the baby boomers retire, such anticipated uncertainties encourage individuals to take their retirement circumstances into their own hands. Secondly, the high cost of healthcare in the United States is a primary driver for individuals and couples filing for personal bankruptcy. The power of compound interest can help one to avoid financial straits in the future.
From Wasteful Expenses to Monthly Investment
To redirect cash that might otherwise be spent on junk or unnecessary spending, explore savings opportunities that can increase your monthly contributions to your retirement accounts. These might include:
- Fewer restaurant lunches and dinners can easily save the typical professional between $100 and $200 per month. Using our numbers above, $100 invested monthly in retirement accounts that earn 10% annually becomes $75,000 in 20 years.
- Purchase discipline at groceries and malls. At the end of your life, it is not the accumulation of objects that provides meaning. A lifetime habit of impulse buying has a tremendous opportunity cost when you realize the power of compound interest. Most people can save between a hundred dollars to several hundred dollars a month with greater spending discipline.
The Bottom Line
If you work for a company that matches your retirement savings contributions, absolutely take advantage of it. It is basically free money. Additionally, the increase in monthly contributions translates into an exponentially larger nest egg over the course of a lifetime.
..here is their advice and let me tell you that I though it was going be one of them boring strategy article but its plain and simple..now you understand the tips and it can help you build a Huge money account...you should be smiling right now ^_^
These were the shoes that Alexander McQueen used for his Spring and summer 2010 live Broadcast fashion show collection in Paris on October05, 2009.I must say they are pretty high 10 inch heels but I love them .Right now there are no shoes better than this style to my eyes although they look hard to walk with am sure we can adjust..don't get me wrong i still love my other shoes but these shoes made a great highlight beside the collection .His collection is so extraordinary if you want to stand out that's one of your designer pick beside other great fashion designers..Also here is some pictures of the live show and its collection...Thanks again to Alexander McQueen Amazing talent.
