Change Your Future With a Dollar

I wrote an article in July showing the power of time and compound interest if you would invest your pocket change. Now I want to show you what can happen if you invest your dollar bills. Why? I want everyone reading this to understand something. Yes saving is hard, I realize that. But small amounts of money can add up over time. I don’t what people to think that unless they have thousands of dollars a year to save, they will never reach their goals. Time and compound interest are your friends. The more time you have, the more magical compound interest becomes. Remember, save early, save often, save whatever you can. So lets get to this weeks examples.

If you put away one bill from your wallet today and never added to it, this is how much that single bill would be worth in the future at different interest rates:

6%

 $1.00$5.00$10.00$20.00$50.00$100.00
10$1.69$8.45$16.89$33.79$84.47$168.95
30$5.42$27.09$54.18$108.37$270.92$541.84
50$17.38$86.89$173.78$347.55$868.88$1,737.75
75$74.58$372.91$745.82$1,491.64$3,729.10$7,458.20
100$320.10$1,600.48$3,200.96$6,401.93$16,004.82$32,009.63

8%

 $1.00$5.00$10.00$20.00$50.00$100.00
10$2.00$10.00$19.99$39.98$99.95$199.90
30$9.32$46.59$93.17$186.35$465.86$931.73
50$43.43$217.14$434.27$868.55$2,171.37$4,342.74
75$297.41$1,487.06$2,974.12$5,948.23$14,870.58$29,741.16
100$2,036.82$10,184.08$20,368.16$40,736.32$101,840.80$203,681.60

10%

 $1.00$5.00$10.00$20.00$50.00$100.00
10$2.36$11.79$23.58$47.16$117.90$235.79
30$15.86$79.32$158.63$317.26$793.15$1,586.31
50$106.72$533.59$1,067.19$2,134.38$5,335.95$10,671.90
75$1,156.27$5,781.34$11,562.69$23,125.37$57,813.43$115,626.85
100$12,527.83$62,639.15$125,278.29$250,556.59$626,391.47$1,252,782.94

12%

 $1.00$5.00$10.00$20.00$50.00$100.00
10$2.77$13.87$27.73$55.46$138.65$277.31
30$26.75$133.75$267.50$535.00$1,337.50$2,674.99
50$258.04$1,290.19$2,580.38$5,160.75$12,901.88$25,803.77
75$4,386.66$21,933.29$43,866.57$87,733.14$219,332.85$438,665.70
100$74,573.45$372,867.26$745,734.52$1,491,469.03$3,728,672.58$7,457,345.15

Pretty powerful statement isn’t it? Would you have ever believed that one dollar could turn into over ten thousand if just given enough time? Or a hundred dollar bill could be worth over a million? Sure it takes a hundred years to turn into that much money but never the less it shows the effects of time and compound interest on your investments. As soon as you start working you should start saving. The earlier you start the less you will have to save or the long term.

For a more realistic example you can take a 16 year old who just got their first job ever. They will have probably 50 years before retirement. If only $100 was invested at the age of 16 with a reasonable return of 10% you would have $10,671.90 at retirement. Not to shabby considering only $100 was invested.

The whole point in creating this blog was to show people that small financial changes can have massive ripple effects on their finances over the longer term. These ripples can either good or bad. It is up to you to decide what future you want. Believe me, I understand taking the path of saving over spending is defiantly a sacrifice that goes against culture norms. Your delaying today’s needs and gratifications for a better tomorrow. It is the slogan of my blog and the origin of its name; Today’s sacrifice and patience equals tomorrow’s Unparalleled Treasure.

The point of these articles is hopefully to show you that your savings goals are attainable. Don’t get frustrated and give up. Keep pushing forward and don’t beat yourself up when you slip up. Your financial life is not about perfection but instead it is about constant improvement. Continue to work on getting better at budgeting, saving and sacrificing. Saving for college or a home or retirement or so you can leave a massive sum of money to your favorite charity is possible. The first step is to believe this and then the next step is a whole lot of hard work. But never forget that you can do this, it isn’t impossible.

2 thoughts on “Change Your Future With a Dollar”

  1. This content is really cool. I have bookmarked it.
    Do you allow guest post on your website ? I can write high quality articles for
    you. Let me know.

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