Starting with $0 and depositing $100 monthly over 10 years (at a rate of return 12%, compounded monthly and taxed at your marginal rate of 28%), you will save $18,616.
Initial balance: $0
Total deposits: $12,000
Total interest earned: $9,189
Total taxes paid: $2,573
Total Saved: $18,616
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Starting with $0 and depositing $100 monthly over 30 years (at a rate of return 12%, compounded monthly and taxed at your marginal rate of 28%), you will save $158,908.
Initial balance: $0
Total deposits: $36,000
Total interest earned: $170,706
Total taxes paid: $47,798
Total Saved: $158,908
+Total saved: $158,908
Starting with $0 and depositing $100 monthly over 30 years (at a rate of return 12%, compounded monthly and taxed at your marginal rate of 28%), you will save $158,908.
Initial balance: $0
Total deposits: $36,000
Total interest earned: $170,706
Total taxes paid: $47,798
Total Saved: $158,908
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12% is the average return of the stock market over the last 40 years or so. I figure I'd just through that out there, to show that a hundred bucks a month does add up.
I would agree with wonderwench, if you can get away without a three hundred a month car payment, I would do so.
Just to show you what $400 a month can do for you...
Total saved: $635,632
Starting with $0 and depositing $400 monthly over 30 years (at a rate of return 12%, compounded monthly and taxed at your marginal rate of 28%), you will save $635,632.
Initial balance: $0
Total deposits: $144,000
Total interest earned: $682,822
Total taxes paid: $191,190
Total Saved: $635,632
Just something to keep in mind
