Nest Egg

See Also:
How Factoring Can Make or Save Money
How important is personal credit in negotiating a commercial loan?
Payroll Accounting
Accounting Concepts
Marginal Costs

Nest Egg Definition

A nest egg is an amount of assets or cash put away for a certain cause or purchase like retirement. The assets are usually invested very conservatively.

Nest Egg Meaning

A nest egg is a special account or investment that has been put aside to save up for a special purpose. The special purposes can range from a vacation or car to a person’s retirement. This is why the investments tend to be on the conservative side. These types of investments typically invest in value stocks or in a special retirement account.

Example

Chris is trying to save up for a new set of tires. The tires cost $800 plus the installation. Chris decides to create a nest egg account that he donates 10% of his paycheck. If Chris is making $2,000 every two weeks on his paycheck, how long will it take for him to save the money for his new tires?
Given the former information it will take Chris 8 weeks where he invest $200 every 2 weeks with his paycheck.
Nest Egg

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