Power Of Compounding With Interest

First of all, you will need some money- $2,000 in this case. You take that money and you place it in a savings account in a bank. In this example we will assume that the interest rate is 10%. Many banks have rates such as 4% or 8%. I would do some research to see which bank has the best interest rate and invest my money in it. After placing your money, and leaving it untouched in the account, you will see your money grow over time. As in this example, a person who invests $2000 at age 19 will have $2,200 at the end of the year, of course adding $2,000 every year. Now imagine they invest $16,000 until age 27. At age 65 they will have about 1,035,161 considering the 10% interest of the bank. Now someone who starts investing at an age such as 25, will end up investing more and end up with a lot less at age 65. They will have earned about $800,000 compared to the person who started off early.

To summarize, the best way to invest is at an early age and picking the bank with the highest interest rate. Also keep in mind never to touch the money, because as long as you dont withdraw money, the more you will earn yearly.

There are many ways to invest, many banks to invest in.To see more about investing and how to gain money with interest check out the links on the side and top of the page they may also help and give you ideas on how to multiply your profit.

Saving And Growing Money In A Savings Account

There are also other simple ways to earn money, and they are actually with a savings account. Certaintly you will miss the money you have and will not be eager to put it into an account, but by placing your extra cash into a savings account you will soon watch your change grow into a fortune! Many people like me would just go head and spend our change, but there are several methods that you can do to make your money grow.

Method 1:

People use checks to pay for many things these days, by using checks to pay for your expenses you can save money without even noticing that it is gone.

So what you have to do is, when you go buy something you will write a check as the actual amount, but in your checkbook ledger you will round it off. For example if I buy a shirt for $29.50 , i will write a check for $29.50, but in my checkbook ledger i will round it off to $30.00. So these extra $.50 will be put into your account, and you will barely notice it.

If you make a lot of purchases or if you pay your bills with checks, then you will see your money quickly grow with this method and you will barely notice. It will be like keeping a piggy bank in your savings account.

Method 2:

You can also save money and watch it grow by using r coupons. Everyone loves using coupons and getting great deals with them, if you like using coupons then this method can also help you.

Imagine i go to the supermarket and I have a coupon for $2.00 off a loaf of bread, so what I will do is buy the bread, and put the money that I had saved on that item, in a savings account. So since i saved $2.00, will put that money into a savings account. However many people will not want to do this because they feel like they are getting cheated, but listen that money was intended for the bread, so if you keep it you will just spend it on something else. By putting it into a savings account, you will watch our savings grow everytime you go grocery shopping or buy something with a coupon.

If you use coupons every week, you will watch your money grow everytime you save a little in the store, remember to put it into your savings account.

Method 3:

You know when you buy something and you get money back. What is that called? That is called rebate. Usually when you buy something expensive like computer or a television, the retailers will send you extra cash for buying their product. For example if you buy a computer for $1,500, and get a rebate of $300 you can take that money and place it in a savings account.

So basically you get money back frolm buying a product, and place that money in a savings account.

Method 4:

You can also save money by buying things on discount and putting the difference into a savings account. For example if I buy a shirt on sale for $10 and the regular price is $15. I place $5 in a savings account, for my savings. This is similar to the coupon method, but instead you just place money on the money you would have spent. Trust me, if you are a shopper this method will work wonders for you.

Method 5:

Take all your change and place it into your savings account, even pennys that you see laying around in the house or car. This is a method you can do just as an addition to many of these methods. You can either make a piggy bank full of coins or just fill up a gallon sized container with coins. If you have a lot of change laying around, collect it and place it all into your savings account. You can even directly deposit, since many banks nowadays have a coin counting system that goes directly into your account.

Method 6:

Get a credit or debit card that automatically rounds your purchases and expenses to the next dollar and places it in a savings account. A bank I know that offers this program is Chase. If you are going to make a savings account, or just have a credit card or debit card ask an employee at the bank if they offer this service. This would replace the Check method and it would make, placing change from buying bills and shopping into your savings account a lot easier. Also this method is more modern and easy to use.

Method 7:

Another simple way to place money into a savings account is by cashing a check. If you want to save and grow money into your savings account, the best way would be to cash your check into a whole number and rounding it off lower. Do not cash all of it, because you will have loose change in your wallet. For example if you receive a check for $754, you will cash the check for $750. Now the $4 will go straight into your savings.

It may seem little, but once you start doing it every week, then you will see how much your money grew. You wont even notice it since it seems so little at first, but when you check your balance with the bank you will be stunned at how much you have.

I hope these methods will help you save money and help your savings account grow. Now dont forget that your savings account includes interest, so the more money you place on it, the more you will end up with by the end of the year. Just remember to place a few dollars here and there and you will save money like never before by doing simple things.

Check out my other pages for money making tips:

http://hubpages.com/hub/Making-Money-Online-And-In-The-Real-World

http://hubpages.com/hub/Makingmoneywithyourblog

http://hubpages.com/hub/HowToMakeMoneyWithEbay