RSSK.I.S.S. $1000 per Month
I was doing some thinking and was curious what the results would be if you or I were to save $1,000 per month for the next 10, 20, 30 and 40 years at different interest rates ranging from 4 to 10 percent.
This simple savings calculator begins at year 0 and presumes you will be saving $1000 per month at 4 percent annual interest. Here is a brief summary of the results. If you want a more in-depth look, you can go here.
- Year 0 $12,222.46
- Year 10 $165,471.45
- Year 20 $393,940.05
- Year 30 $734,548.51
- Year 39 $1,181,961.34
This simple savings calculator begins at year 0 and presumes you will be saving $1000 per month at 6 percent annual interest. Here is a brief summary of the results. If you want a more in-depth look, you can go here.
- Year 0 $12,335.36
- Year 10 $186,322.63
- Year 20 $502,874.13
- Year 30 $1,078,806.89
- Year 39 $1,991,490.73
This simple savings calculator begins at year 0 and presumes you will be saving $1000 per month at 8 percent annual interest. Here is a brief summary of the results. If you want a more in-depth look, you can go here.
- Year 0 $12,449.93
- Year 10 $210,580.39
- Year 20 $650,358.75
- Year 30 $1,626,508.47
- Year 39 $3,491,007.83
This simple savings calculator begins at year 0 and presumes you will be saving $1000 per month at 10 percent annual interest. Here is a brief summary of the results. If you want a more in-depth look, you can go here.
- Year 0 $12,565.57
- Year 10 $238,860.49
- Year 20 $851,450.24
- Year 30 $2,509,756.12
- Year 39 $6,324,079.58
There is a huge difference between 4 percent and 10 percent. There is also a huge difference between how long you invest the money for. In any case, I hope by keeping this simple, you can see how planning your investments can improve your golden years.
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Comment by Mr Make Friends on 28 December 2007:
what a great idea! was surfing the net and found your blog. I’m currently looking at saving some money and your calculator was actually quite helpful, thanks for taking the time to post this article, it must have taken some time, with all the calculations involved.
Comment by Mark from TheLocoMono on 30 December 2007:
Glad to hear your feedback, Mr Make Friends. It was fairly easy to use the calculator, I have used it for quite some time now. In fact, I encourage people to use it, it is a great tool to help you figure out how much you will need and what you need in terms of interest in order to reach your target goal.
Comment by Mr Make Friends on 1 January 2008:
No problem your post was excellent, sometimes all that is needed is time to have useful information written down so that it is easier to compare. I’ve just added a number of financial money saving tips to my site would be grateful for any helpful feedback you have good or bad about them. I try to write detailed useful articles that help people make major financial decisions. http://www.friendsandmoney.co.uk/money-saving-tips.html. feel free to email me rather than cluttering up your excellent blog. Happy New Year!
Comment by Mark from TheLocoMono on 1 January 2008:
I will certainly be glad to head over and check out your site. No worries about cluttering up my blog. I WANT CLUTTER.
It is always good to hear engaging conversation with my readers.
Comment by Iwantmoremoney on 21 January 2008:
How do you get an interest rate at 10%?
Comment by Mark on 22 January 2008:
It is rare to find interest rates at 10 percent. I was using the term from the calculator for this example.
I do know you can get 10 percent or more interest on tax liens but I do not have the experience to answer this question. I am reading about it though so hopefully in the future I can write about this.
Mark’s last blog post..Common Sense Wealth Carnival # 4