Getting into the habit of saving regularly is a great habit!
If you visit the website www.thisismoney.co.uk
you can use their calculator to compare the effect of regular savings with
stashing a lump sum.
e.g if you save £250 a month over a year earning 6% interest, at the end of the year you will have
a sum of £3,083 in your savings account.
If you could earn the terrific interest rate of 25%, you would have accumulated a sum of £3,368.
With regards to investing a lump sum, if you invested £15,000 over two years at 6% interest, you
would have a sum of £16,907 to your name.
But just imagine if you could earn 25% interest. Your £15,000 would have been transformed into the
tidy sum of £24,604!
This shows the amazing effect of compounding on your savings which has been described as
the eighth wonder of the world!
Happy saving!
Aled Evans
