Twelve Cents a Day

Twelve cents isn't a lot of money. Really, it's pocket change, and many would scoff at such a tiny amount. But to me it's progress.

I get twelve cents every day for doing absolutely nothing. 3 cents is interest from my ING Saving account, which has 3% APR and 9 cents is interest from my Prosper investments, which have an average of 17% APR. 

The interest that I gain from both of these amounts is constantly increases as I add to the principle investment, as well. But even if we don't count me saving extra money, it's still a huge building block and I greatly value it.

You see, if I take that interest and only that interest, and put it into a savings account at 3% APR that compounds monthly, after 5 years I would have $236.69. Ten years would be $511.49. 

And in 30 years, when I'd like to retire, it would be $2,132.60. Thats not bad for twelve cents day that I do nothing to obtain. 

Of course, by the time I retire because of inflation that will probably be the cost of a bagel. Maybe with cream cheese.