It may be difficult to keep track of what was spent each month. Fixed expenses, like rent and car payments may be consistent each month, and easier to remember. Expenses that vary, or change, can wreak havoc in a spending plan. Keeping track of spending allows you to figure out where your money goes each month. There are many ways to keep track of spending.
A Tale of Two Investors
Saver and Spender are friends from college, and learned from their families the importance of saving for the future. During college, Saver started to invest money after working a part-time job.
Saver placed money into an investment fund earning an average of 10%. Due to life events, Saver stopped saving at the age of 33. Saver invested a total of $24,000 over 12 years.
Spender decided to spend discretionary income from a new career on a brand new car, travel, recreation, and entertainment. At age 34, Spender decided to start thinking about retirement and invested $2000 for the next 32 years, earning an average of 10%. Spender invested a total of $64,000 over 32 years.
Who will end up with more money by retirement? Saver had accumulated $550,804 more than Spender by the age of 65. Key factors to increasing the value of investments is to save early and utilize compounding interest!
Common Retirement Funds:
Cost of Attending UW-Whitewater. Whether an undergraduate or graduate student, estimate your cost of attending UW-Whitewater.
Auto Loan Payment. Determine your estimated monthly auto loan payment.
Compounding Interest. Calculate savings account interest.
Living On or Off Campus. Determine whether living on or off campus is better for your lifestyle and budget.
Retirement Planner. Shows when you can expect to retire, and if you are saving enough.
Salary Paycheck. Calculate your net pay (take-home pay) by entering information regarding current or future salary and benefits.
Student Loans. Estimate the size of your monthly loan payment and the annual salary required to manage the loans without too much difficulty.
Student Loan Repayment. Estimate your student loan payment upon leaving college or dropping below 1/2 time status.