I know you have heard it before so I will say it again! It’s never to late to save and no amount is too small. To me, savings is like exercising and eating healthy. You know you should do it but its difficult and where do you begin. I’m am going to show you how saving a small amount does pay off using this Simple Savings Plan.

Start by saving $5 per week.  You can either go to the bank directly or it would be easier to have it taken out of your account the same time every week. If you get paid every two weeks then save $10 per pay check. When you begin, its important to make the savings so small that you won’t miss it too much.

Then, after one year of saving only $5 per week, increase the amount by $5. So, in your second year of the Simple Savings Plan, your are now saving $10 per week or if you get paid every 2 weeks then its $20 per pay check. Just think what may have happened throughout that first year. You may have gotten a new higher paying job, a raise or paid off a debt. If so, then savings an extra $5 a week isn’t much!

At year three, increase that amount by an additional $5. You will be saving a total of $15 per week by the third year of the Simple Savings Plan. Do you get where I am going with this? By the end of year three you will have a total of $1,560. If you follow this routine for ten years, you will have about $14,300 and that’s not including interest.

Just to recap, here is the plan:
Year 1 – $5 per week = $260
Year 2 – $10 per week = $520
Year 3 – $15 per week = $780
Year 4 – $20 per week = $1040
Year 5 – $25 per week = $1300
Year 6 – $30 per week = $1560
Year 7 – $35 per week = $1820
Year 8 – $40 per week = $2080
Year 9 – $45 per week = $2340
Year 10 – $50 per week = $2600

Grand total of $14,300 plus interest!
I know this amount is nothing to retire on but its a start.