You might discover a saving opportunity by taking a closer look at your personal spending habits. Do you buy a cup of coffee, a newspaper, some sweets or something else on your way to work? All those little purchases can add up to a lot of money every month. Or maybe you spend large sums on streaming services or digital games? Do you end up splurging on stuff you don’t need just because it’s on sale?
If you can spare even 10 euros a month after your essential expenses, you can start saving monthly in a fund. With regular saving, your capital will keep growing and you can reap the benefits of compounding.
Compounding is a phenomenon that illustrates how you can earn substantial returns over time even if you save little by little. When you save regularly and gradually grow your investments, your earnings will compound, and the effect of compounding will only grow bigger over time. And time is a saver’s best friend.
See how your savings can grow over time
See the example below to get an idea of what kind of amounts you could aim for if you save 10 euros a month. If you start saving 10 euros a month and invest in a globally diversified equity fund every month for 20 years, you will have invested 2,400 euros by the end of that period, but thanks to compounding, your capital may even have doubled!
We at Nordea have calculated that the blue area reflects 90% of all investments, but variation may be high. The calculation does not take into account any taxes or other costs. Past performance is no guarantee of future results. The value of fund investments may rise or fall depending on the market events, so you may end up with a smaller amount than you originally invested.
- As it turns out, 10 euros isn’t such a small sum if you save it regularly year after year. And that 10 euros is all you need to start regular monthly saving with Nordea.
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