Saving for retirement sounds daunting, but finding the money might be easier than you think. It’s important to remember that even small contributions can add up to big savings thanks to compound interest.
Here are some simple ways to save a few dollars every day – and an idea of how that money can grow over the years. To complete your TSP checkup, visit Planning & Tools: Investment Strategy.
If Every Day, You Saved the Cost of... |
You'd Contribute... |
in 10 Years You'd Have* |
in 20 Years You'd Have* |
in 30 Years You'd Have* |
|---|---|---|---|---|
| 5 text messages ($1) | $365 per year | $4,997 | $14,089 | $30,631 |
| 1 bottled water ($1.50) | $547 per year | $7,489 | $21,114 | $45,904 |
| 1 lottery ticket ($2) | $730 per year | $9,994 | $28,178 | $61,261 |
| 1 fancy coffee ($3.50) | $1,277 per year | $17,483 | $49,292 | $107,164 |
| 1 dry-cleaned shirt ($4) | $1,460 per year | $19,989 | $56,356 | $122,522 |
| 1 short taxi ride ($5) | $1,825 per year | $24,986 | $70,444 | $153,152 |
| 1 take-out lunch ($7) | $2,555 per year | $34,980 | $98,622 | $214,413 |
*All figures assume a 6% annual rate of return, compounded monthly.
