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This is particularly true after theinflationary spikeof 2022-2024.
Heres a look at how round-up investing canboost your savingsby $100,000 or more in 20 years or less.
What Is Round-Up Investing?
For example, imagine you buy a new chair for your living room that costs $123.61.
That totals $35.42 per month, or $425.04 per year.
At a 10% average annual return in an investment account, that would translate to about $26,897.
If youre a more frequent spender, the round-up strategy can actually work to your advantage.
This is because youll be forced to save more every month if you round up every transaction.
After 20 years of earning a 10% annual return, youll end up with $58,471.
The first is to boost your average round-up amount.
Another option is to boost youraverage annual return.
The third option is to boost your number of transactions.
Option four is simply to make additional investments on your own.
The final option is to extend your time frame.
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