How it is calculated
Each month the savings grow with the interest and the new contribution until they reach the goal. The contribution for a given term comes from the future value of equal payments.
From the modules: set the money aside on payday (“pay yourself first”) and keep the goal money separate from your emergency fund.
The terms in the Glossary
- Saving — Saving is setting aside part of your income today to use later — for a reserve, a goal or the future — with the money ke
- Financial goal — A financial goal is a specific amount you want to save or pay off by a set date — how much, by when, and how much per we
- Pay yourself first — "Pay yourself first" is the principle that saving is the first expense on payday, not whatever is left at the end of the
- Compound interest (compounding and capitalisation) — compound interest is interest charged not only on the starting amount but also on interest already added — which is why
- Emergency fund — An emergency fund (reserve) is money set aside only for unexpected costs — illness, repairs, losing a job — kept accessi