In order accumulate enough money for a down payment on a house, a couple deposits $668 per month into an acco?
For how many months do they make this deposit? What is the interest rate?
In order to accumulate enough money for a down payment on a house, a couple deposits $210 per month?
S = 210 * (1 + 0.06/12) + 210 * (1 + 0.06/12)^2 + .... + 210 * (1 + 0.06/12)^48 S = 210 * 1.005 + 210 * 1.005^2 + ... + 210 * 1.005^48 S = 210 * 1.005 * (1 + 1.005 + 1.005^2 + ... + 1.005^47) S * 1.005 = 210 * 1.005 * (1.005 + 1.005^2 + ... + 1.005^47 + 1.005^48) S * 1.005 - S = 210 * 1.005 * (1.005 + 1.005^2 + ... + 1.005^47 + 1.005^48 - 1 - 1.005 - ... - 1.005^47) S * (1.005 - 1) = 210 * 1.005 * (1.005^48 - 1) S * 0.005 = 210 * 1.005 * (1.005^48 - 1) S = 210 * 1005 * (1.005^48 - 1) / 5 S = 210 * 201 * (1.005^48 - 1) S = 11417.347489836361011406410440876
What money hacks has saved or made you alot of money?
The simplest hack I know is to make saving money a daily habit.If you’re anything like me, your parents trained you to budget by making you set budgets for every little category. This much for clothes. This much for gas. This much for food.You’re probably still doing this today with a budgeting app where you set those budgets and then categorize each purchase into one of them.The problem? This doesn’t work! At the end of the month, your spending looks nothing like what you predicted. Why? Because you haven’t made managing your money a daily habit.Here’s what I’ve found works instead:1. Know Your Free-to-Spend NumberFirst, take your post-tax salary number. For simplicity, let’s say it’s $5,000 per month.Then subtract your monthly bills—things like rent, cable/internet, and phone; let’s call this $1500.Then subtract the amount you want to save every month. Let’s say that’s $1000.The remaining amount—$2,500 in this case—is the amount you have free to spend on discretionary items this month.Divide that by the days in the month, and you’ve got a free-to-spend number for each day. Things get so much simpler when you know you can spend $83 dollars today.2. Track Your SpendingYour goal is to spend no more than your free-to-spend number above. To do that, you need to know how much you’re spending day in and day out.You can do this by adding up your transactions from your bank accounts and credit cards every day in a spreadsheet.If you want something more automated and live in the US, my company Swish makes a free app that calculates all this for you.Unlike other budgeting apps, it’s so simple you’ll actually use it!3. Eliminate Waste to Increase Your SavingsFinally, you should cut out unnecessary expenses.This is normally the thing people tell you to do first, but honestly I think that’s totally backwards. If you try to live like a monk, you’ll never stick to your budget.But once you know how much you can spend each day, it’s way easier to decide if buying something is actually worth it to you.Will these shoes really make me happy? Do I really need that extra drink?If yes, buy it! If no, save the money so you have more free to spend tomorrow.