About 19 weeks ago I told you about a former student of mine who was starting her 52 week reverse savings plan. (If you don’t remember, you can check out the post here).
Well, if she’s kept up with her New Year’s Resolution, she should have made 19 deposits by now . . . for a total of
52+51+50+49+48+47+46+ . . . .
(Please tell me you’re not really adding these?!?–Remember, just ask yourself “What would Gauss do?)
$817!!! (Former student of mine, if you’re still on the Reverse Savings Plan Way to Go! $817 is a lot of money!)
Wow! In just 19 weeks time or 37% of the year), she’s been able to save nearly 60% of her total goal!
Maybe she should just give up on the rest of the plan? I mean, $817!
Let’s suppose she’s putting that money into her savings account. Last year, CNN Money reports that, on average, people made about 0.06% interest on the money in their account.
Let’s compare the two amounts:
If she stops today: $817 If she stops in 33 weeks: $1378 (her goal)
One year from now: $817.49 One year from now: $1378.83 (off to college)
Five years from now: $819.45 Five years from now: $1382.14 (graduates from college)
Ten years from now: $821.92 Ten years from now: $1386.29
20 years from now: $826.86 20 years from now: $1394.64
50 years from now: $841.88 50 years from now: $1419.97
Total Amount of Interest earned: $24.88 vs. $41.97
The moral of the story? Keep on keeping on (and throw an extra few bucks in each month if you can!)