Saving Now More Important than Perfect Investing [Money]
The Simple Dollar finance blog crunches the numbers to help anyone who's procrastinating putting aside a little money each paycheck because they're trying to perfect their investment strategies. For example, if the stock market returns nine percent in 2009, and you're afraid of picking something that returns seven percent instead of 11 ...
If you elect to save just $10 a month and put it in the good 11% investment (compounded monthly), you have $125.40 at the end of the year.If you elect to save that same $10 a month and choose only the 7% investment (again compounded monthly), you have $123.80 at the end of the year.
Yes, the difference between the great investment and the awful investment is only $1.60. Not much, huh?
And, of course, those both beat the zero percent you'd earn by sitting on the sidelines with 20 financial brochures and 10 investment site tabs open in your browser. Hit the link for more straight-up investing figures. Photo by thelastminute.
