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Radio Stations

Yourself First!

It’s been said that when it comes to money it’s not what you earn, but what you save that counts!  No matter where you start from, consistently saving money can help you achieve your financial goals.  Whether you’re saving for the down payment on a home, or Click here to listen to "Pay Yourself First"education, or retirement, the key is to start early and save regularly.  One hint is to “pay yourself first,” that is to set aside a certain amount each paycheck committed to savings.  Every payday, before you do anything else, put aside part of your wages for savings.  You can have money automatically withdrawn from your checking account and put into a savings account.  Or you can join a retirement plan at work (a 401(k) or 403(b), for example) that deducts money from your paycheck.  No matter how you do it, the important thing is to save by paying yourself first.

The Magic of Compound Interest
When you save your money in an interest bearing account, your money will grow beyond what you deposit thanks to compound interest.  This means that when interest is added to the account, the next time interest is calculated (if you don’t withdraw it, that is) you’ll get interest on the interest. Listen here to "Compound Interest"For example, if you save $100 a month for ten years, at 5% interest compounded annually, the $12,000 you deposited would grow to $16,011.
Another bit of savings magic is “The Rule of 72.”  This is a formula for figuring out how long it will take to double the money you save.  Just divide the interest rate you’re receiving on your savings into 72.  The result is the number of years it will take to double your money. 

Using that same interest rate of 5%...if we divide it into 72 the result is 14.4.  This means that if you placed $1,000 into a savings account at 5% interest it would double to $2,000 in 14.4 years without any additional contributions.

Other Savings TipsClick here to listen to "Give Yourself a Raise"

Saving for Retirement
It's never too early to start saving for your retirement! Follow the link below for more information on Individual Retirement Accounts...

Individual Retirement Accounts