What is compounding growth and how does it help me save?

Compounding growth is like building a snowball.
If you start rolling a small snowball around the yard, the surface area grows as it grabs on to more snow crystals. What was small eventually gets bigger.

An Investment Account works the same way.
Not only does the initial amount invested grow, but the money you make on that investment also starts working for you. The surface area grows resulting in more dollars earning a return. 

Here’s an example:
If you deposit $100 into an account in January, assuming it grows at 5%, you will have $105 at the end of the year. 
The next year, you start with $105 plus an additional $100 you deposit in January, rolling into $215.25 by December.
The year after, you invest another $100 making the total $315.25. By the end of that year, you have $331.25.
After 5 years, you’ll have $580 simply by putting aside $100 /year or $8.33/month!
On a slightly bigger scale, putting aside $1,000/year or $83.33/month will get you $5,801.91 at the end of 5 years. 

Imagine how you can set up an emergency fund, holiday budget or home savings by starting to put money aside today.

Do you know how much you would need to start saving today to reach your goal?

Have you taken advantage of the Tax Free Savings Investment Account and utilize it to its full potential?

How much savings room do you have in your cashflow plan?

I would love to chat with you more about this strategy and design a savings and investment plan that is perfect for you and your current story. Message me today or click on the schedule a conversation button below to connect.