When it comes to saving money, it’s easy to think you need to set aside big chunks to make a difference. But here’s the reality: saving even a little bit consistently can lead to big results over time—especially when compound interest comes into play.

Start Small, Stay Consistent

Let’s say you decide to give up your daily coffee shop visit and brew your own coffee at home. Or, maybe pack your lunch instead of getting fast food. Either of these habit changes might be a savings of $5-6 a day. In a week, that’s $35-42. In a month, it’s about $150-180. And in a year? You’ve saved $1,825-$2,190 on a simple habit change. What would you do with an extra $2,000 in your pocket per year?

Now imagine you put that money into a savings or investment account that earns interest…

What Is Compound Interest?

Compound interest is when you earn interest not only on your savings, but also on the interest that builds up over time. It’s like a snowball—rolling down a hill, getting bigger and faster as it goes.

Here’s a simple example:

• You save $1,000 in a savings account that earns 5% interest annually.

• After one year, you have $1,050.

• In year two, you earn 5% not just on the $1,000, but on the full $1,050.

• At five years, that original investment is up to $1,276.28 – even if you haven’t added any more money to the account.

• That keeps going – and growing. Your money is making money for you!

If you keep adding money – even small amounts – regularly, the growth adds up, or “compounds”, even faster.

Time Is Your Financial Best Friend

The earlier you start, the more time your money has to grow. You don’t need to be rich to build wealth—you just need time, patience, and consistency. Whether it’s $1 a day or 1% of your paycheck, every bit counts. This rule applies to your savings bank account, and to your retirement accounts. It’s never to early, or too late, to save a small amount of money.

The Bottom Line

Don’t underestimate the power of small savings. With consistency and time, your small savings steps today can lead to big financial wins in the future. To learn more check out your MuuvWell Financial Literacy Program in your MuuvWell app.

Written by: Stephanie Anklan, Registered Dietitian