How much does a daily candy bar cost? Would you believe $465.84? Or more?

If that number, $465.84, seems a bit high, then read on!

This post is the third in a series of 9 posts under the category of “Save”. The posts will essentially be reprints of 9 articles from, a Securities and Exchange Commission  web site. The 9 articles present a roadmap to sound saving and investing. You are invited to visit to view the original articles.

The 9 steps to the Savings and Investing Roadmap are:

Define Your goals (previous post)
Figure Out Your Finances (previous post)
Small Savings Add Up to Big Money (this post)
Pay Off Credit Cards or Other High Interest Debt
Save for a Rainy Day
Understand What It Means to Invest
Diversify Your Investments
Gauge Your Risk Tolerance
Learn About Investment Options

OK, let’s see about this $465 candy bar.

“If you buy a candy bar every day for $1, it adds up to $365 a year. If you saved that $365 and put it into an investment that earns 5% a year, it would grow to $465.84 by the end of five years, and by the end of 30 years, to $1,577.50. That’s the power of “compounding.”

With compound interest, you earn interest on the money you save and on the interest that money earns. Over time, even a small amount saved can add up to big money.

If you buy on impulse, make a rule that you’ll always wait 24 hours before buying anything. You may lose your desire to buy it after a day. Also, try emptying your pockets at the end of each day and putting spare change aside. You’ll be surprised how quickly those nickels and dimes add up.”

Sounds simple doesn’t it? Like most of the main points of this roadmap, it is an idea we’ve heard before, probably many times. Yet, many of us look at a small expenditure like a candy bar and say, “It’s only $1, that can’t affect my financial plan, and besides, I want it!”

There is a difference between knowing what is best course of action, and doing it. Hopefully simple reminders, like this one, will help you make better decisions more often  and take a courses of action that help your financial future.

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