How $1.00 A Day Becomes $66,941
The coins rattling around in your pocket can add up to big savings over time. Want a foolproof way to turn $1 a day into $66,941? It doesn’t take a lot of money or time or personal sacrifice. There’s no magic, no multilevel marketing and no salesman will call at your door. In fact, it’s the simplest and most-proven way to get richer, and if you extend this concept to other parts of your life, you could end up with an enviable retirement nest egg.
If you can knock this $123 out of your monthly budget, at 10% it will grow to $278,040 in 30 years.
To start, all you have to do is take your pocket change at the end of the day and drop it in a jar. If you can do that, and you put away about $1 a day, that’s just $7 a week. At the end of the month, you’ll have about $30. Since this is money in your pocket, you’ve already paid taxes on it in the form of withholding from your paycheck. Every month, deposit your savings in a Roth IRA account, where it can grow tax-free and — more important — be withdrawn tax-free in the future.
What’s a paltry $30 a month going to do for you? Growing tax-free for 30 years, with a 10% annual return, your investment account will be worth $66,941. Not bad for pocket change, but that’s just the beginning. Here are some other ideas for saving a few bucks here and there that can add up to big dollars over time.
Trim your expenses to save even more. Lets look at a few monthly activities and expenses to see what trimming them down will equate to in Monthly Savings and Annual Savings:
- Take-out vs. dining out once a month $45 = $540/year
- Manicure less often $15 = $180/year
- Fewer trips to car wash $12 = $144/year
- Video rental vs. movie monthly $11 = $132/year
- Drink Regular coffee instead of cappuccino on weekdays $40 = $480/year
- These monthly savings total $123 or $1,476/year.
If you can knock this $123 out of your monthly budget, at 10% it will grow to $278,040 in 30 years. You’ve made a big contribution to your retirement with just a few small sacrifices. You may not be able to accomplish all of the savings listed above but try putting your own list together. Once you begin to analyze how you can save money I bet that you can up with one that is even better.