Millbury Savings - News
News
Home Page > News

What's New

Tap the Power of Compounding

We’ve all heard the dire warnings from financial experts: Americans today are just not saving enough. Developing a “savings habit” can have a huge impact on your personal financial well-being. So how do you get motivated to save? And how much should you be saving?
 
First word of advice: Saving something is better than saving nothing. So decide how much you can reasonably put aside each week, pay period or month. Then stick to it.

You will be amazed what a difference your simple “savings habit” can make. Here’s why. It’s called the magic of compounding — and it can be a powerful magnifier of your personal wealth over time. To understand why, let’s consider a simple example of saving just $100 every month, with your money earning 4 percent compounded daily.

As you can see, the longer you put compounding to work on your savings, the greater the magic. Which means the sooner you start saving, the better. So start small if you have to, but start saving now and keep it going.

After... You will have
contributed...
Compound interest
would add...
Your total
would be...
1 Year

$1,200

$26

$1,226

2 Years

$2,400

$103

$2,503

5 Years

$6,000

$653

$6,653

10 Years

$12,000

$2,779

$14,779

20 Years

$24,000

$12,827

 $36,827

 

Online Banking
How can we help you?