Many family child care providers are reluctant to start saving money because the amount they can save is so small. If you are thinking, "It won't make much of a difference," think again.
If you saved $5 a day/5 days a week for 50 weeks a year (don’t buy a latte for yourself or a treat for children), this will add up to $1,250 at the end of the year.
If you invest the $25 per week into an Individual Retirement Account (IRA) that earns 8% a year, after ten years you will have $19,127.It’s never too late to start saving. If you saved $10 a day starting at age 52 and earned 8% a year, you would have $294,000 by age 70!
Use your savings to build up an emergency fund (goal: 3 months of operating expenses), pay off debt, or save for retirement.
How do you manage to save money?
Tom Copeland - www.tomcopelandblog.com
Image credit: https://www.flickr.com/photos/186281968@N07/49315304827
For more information, see my book Family Child Care Money Management & Retirement Guide.
