Weekly Business Tip: Start Saving Now

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.