smart spending

9 cash-saving tips that pay big bucks

Save a few bucks now, big bucks later
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Save $5,000 this year
By Jean Chatzky

Save a few bucks now, big bucks later © Ugur Anahtarci / Fotolia

Save a few bucks now, big bucks later

The expression "a penny saved is a penny earned" doesn't cut it these days. But saving a few dollars here and there can add up, particularly if you park the money in a high-interest-bearing savings account or, better yet, a tax-favored vehicle such as a 529 plan or an IRA containing a mix of investments that offer higher returns over the long run.

OK, so 10% annual returns from the stock market may seem far-fetched. But we contend that it's not unreasonable to expect 7% annualized returns from a conservative blend of bonds and stocks over a period of 15 years. These are the assumptions we used to calculate how the few bucks you squirrel away today can turn into big-time savings later.

Compare the latest high-yield savings account rates

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