Tuesday, March 23, 2010

Compound Interest Calculator

I don't think I have blogged about this before but even if I have a good reminder. Compounded Interest is the one really magical thing about saving money. One of the best calculators I have found is here at Moneychimp.com

What got me looking at this was reading an article yesterday about how to be that millionaire that people talk about. And I am talking about a cash millionaire, not a stuff millionaire (a lot easier to get there when 300k of it is your house). Using our compounding stuff and not necessarily killing one's self the numbers don't lie.
Now I'm not saying saving $417 a month is the easiest thing in the world but considering that all you have to do is save that a month for 31 years (make 10% interest) and bam, 1 mill in the bank, do this in a Roth and it is tax free. If you can't tell it is things like this that excite me about the possibilities available when you handle money strategically.

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