Visualizing Monthly Savings With Tiny Circles

4 min read

Pretend this tiny circle represents $50 in monthly savings:


It looks insignificant by itself. But if you consistently save that same $50 each month, you can save $600 over the course of a year:


That’s pretty good. Not life changing.

If you save $50 each month and invest it at a 7% interest rate for 10 years, it will blossom into nearly $8,300:


That’s a decent chunk of cash.

Do this for 20 years and it will turn into $24,600:


Okay, that’s actually pretty exciting.

Do this for 30 years and these savings will transform into an impressive $56,700:


That’s a significant amount of money.

The Math

The 10-year savings timeline

There’s some cool math behind these numbers. Assuming a 7% interest rate, your monthly savings will be worth about 166 times as much in 10 years.

For example, if you save $50 per month, you can save $600 per year. Invest this $600 each year for 10 years straight and you’ll have roughly 166 times as much as your monthly savings:


Monthly savings: $50

Total Value in 10 years: $50 * 166 = $8,300

This works for any amount of monthly savings. Suppose you save $200 per month instead:


Monthly savings: $200

Total Value in 10 years: $200 * 166 = $33,200

The 20-year savings timeline

The same type of math applies to a 20-year savings timeline. Your monthly savings will be worth about 492 times as much in 20 years. Here’s an example of saving and investing $50 per month for 20 years:


Monthly savings: $50

Total Value in 20 years: $50 * 492 = $24,600

The 30-year savings timeline

Again, the 30-year savings timeline can be boiled down to one number. Your monthly savings will blossom into a total value of roughly 1,133 times as much in 30 years. Here’s an example of saving and investing $50 per month for 30 years:


Monthly savings: $50

Total Value in 30 years: $50 * 1,133 ~ $56,650

Knowledge is Power

Knowing this math helps us understand the importance of monthly savings. Even tiny adjustments to monthly savings can make massive differences over time.

Suppose you currently save $100 per month. If you can cut your spending by $100 each month and use a side hustle to earn an extra $100 each month, you can start saving a total of $300 each month.

The difference between saving $100 and $300 each month doesn’t sound life-changing, but over the course of two decades it can be. Here’s what a $100 monthly savings invested at 7% interest will be worth in 20 years:


Compare that with a $300 monthly savings, invested at 7% interest over 20 years (brace yourself):


That’s almost a difference of $100,000.

Don’t underestimate the power of increasing your monthly savings even by a few hundred dollars. 🙂

My favorite free financial tool I use is
 Personal Capital. I use it to track my net worth, manage my spending, and keep an eye on my monthly cash flow. It only takes a few minutes to set up and it makes tracking your finances simple and easy. I recommend trying it out.

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