New-year calculator shows how diverting resolution money can grow savings
As Tuesday marks the official end of the Christmas season, it is time to think about new year resolutions, with savings at the heart of many people’s pledges.
Savings goals cited include building an emergency fund or putting money aside for short- or long-term aims, while cutting down unnecessary spending is another common promise. The Guardian offers a calculator to see how quickly diverting money into a savings account can help build a nest egg.
The tool assumes an interest rate of 4% paid yearly. It notes that once you start saving you begin to earn interest on the interest as well as your original payments — compound interest — which could help you reach goals faster than expected.
The interactive calculator lets you choose a target savings amount and the resolutions that free up money for weekly savings; the example fields show target savings £0 and weekly savings from resolutions £0. Users can input their own figures to see personalised results.
Key Topics
Business, Savings Calculator, Christmas Season, Compound Interest, Savings Account, Emergency Fund