You have to start somewhere, right?
My thinking is to spend my interest while also still depositing. But, I’m not 100% convinced.
I’d be paying tax on the interest. This is why I think I should spend it. This would offset the cost. On the other hand, it would not be a large amount of tax.
If I compound my interest, I’ll reach the break even point sooner. Then I’d be earning more interest than I’m paying in.
Eventually, I would earn so much interest that I would have more cash to invest. Thus, my savings would grow faster.
Perhaps this is the way, compound until break even. Then start withdrawing interest income. I’ll think about it more.
It all depends on what kind of money you have available to do these things.
$60 HBD savings gives you $1 interest per month. Thus $3600 savings is also a cool milestone as that is then $60 interest, the following month is $61+ interest and it starts growing in bigger lots after that.