Beginner's Guide to Investing: Start Saving
Hey, Where did all my money go?
You started the day with $10 in your wallet. You may not recall spending much, but by the time you get home, your wallet is empty. How does that happen?
Here's one way to find out. For a month, record every dime you spend and every single item you buy. A small notebook you can carry with you everywhere is great for this exercise. As a backup, request a receipt for every purchase you make. You'll probably be surprised at how much you spend and where your money goes.
When the month has passed, look at each of your purchases. Are you spending money on things you can just as easily live without? Try eliminating some of the things you do not need. Smart small – maybe one less cup of coffee, or try bringing your lunch once a week. Just think how much savings you could accumulate if you stopped spending or spent less money on some of your more "unneeded" purchases.
Feed it often and watch it grow
You may not need a lot of money to accumulate meaningful savings. Thanks to compound interest, small regular savings can add up over time. Because with compound interest, it's not just your money that earns interest – your interest earns interest as well – creating a snowball effect. The longer you save, the more compound interest works for you. So the sooner you start saving, the better off you'll be.
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