Make Your Money Work for You
Once you've started saving money, make it go to work for you—and watch it grow! In order to save money for a short-term goal, such as a down payment on a home, Suze says you should choose a safe place to keep it, such as a money market account, a savings account, a CD or a T-bill. At an annual rate of return of 5 percent, if you save $100 per month for five years, you will have $6,829!
For a longer-term goal like retirement, Suze says you can put your money in stocks or mutual funds, where it can grow over 10, 20 or 30 years. She says with an average annualized gain of 8 percent, if you save just $100 per month, you will have $59,295 in 20 years and $150,030 in 30 years.