Small investing: How much can your money grow?
Can you invest an extra Rp.250.000 a week? Even small amounts can add up over time.
An acorn is smaller than a mouse and weighs less than a key. But give that acorn just the right conditions and time and you could have an 80-foot-tall oak tree that weighs several tons. Small beginnings. The possibility of big results. Your investments could do similar if you’re able to put away a little more money every week or every paycheck. If that’s possible for you, the results can add up.
In fact, they have the potential to multiply. Putting Rp. 250.000 a week in a jar for 30 years would get you Rp. 390 Million. Invest that same weekly amount at a 6% annual rate of return, and compound earnings could help that investment grow to more than Rp. 1Billion over those 3 decades.1
You can find investing acorns there, too. If you had a Rp. 490 Billion annual income and bumped your pre-tax contributions up just 1%, that’s only about Rp. 280.000 off your bi-weekly take-home pay. But every month in retirement, you could have another Rp. 2.000.000 to spend.2
Retirement made easier, not easy
Investing an extra Rp. 250.000 a week or contributing an extra 1% toward your retirement might make getting to your financial goals easier. But it still won’t be easy. You’re always balancing current need against future goals.
It may help to think of it as taking care of your future self and family. You can stay disciplined about saving by incorporating annual savings increases. Some employers’ retirement plans allow you to increase the amount you put toward your retirement. This helps make those increases slowly over time, so that it’s easier for you to work into your budget.
What if you can’t do that much?
There’s no magic in 1% or in Rp. 250.000. Whatever additional money you can put away can help. If it’s Rp. 100.000 extra a week, great! Maybe just a few bucks per paycheck? That’s fine, too.
Remember, success doesn't require major cash
Let time and compound earnings work for you to help achieve your goals.