Small savings add up to big money over time

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

If you buy a candy bar every day for INR 1, it adds up to INR 365 a year. If you saved that INR 365 and put it into an investment that earns 5% a year, it would grow to INR 465.84 by the end of five years, and by the end of 30 years, to INR 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.