Saving an extra couple of hundred dollars each month is easier than you might think. It starts by taking a hard look at all the little expenses you rack up, and cutting the "money pits" from your daily spending.
Saving an extra couple of hundred dollars each month is easier than you might think. It starts by taking a hard look at all the little expenses you rack up, and cutting the “money pits” from your daily spending.
The first thing you need to do is track where every dollar goes for one month. Maybe you go out to lunch every day… and that’s a huge money pit! If you eat dinner out twice a week (for around $20 a meal), at the end of the month, you’ll have spent about $160. Instead, put that same money into a retirement fund earning an average 8%, and in 20 years, you’ll have more than $91,000!
Today, a cup of coffee can cost as much as a gallon of gas, so cut the specialty coffee. At two cups a week, you’ll save $32 a month. Put that into an 8% retirement fund and in 20 years, you’ll have saved $28,000.
So saving big doesn’t mean starting big, but it does mean starting soon. A few extra bucks here and there, invested over a long period of time, can compound into some serious cash. To find out how much you’re loosing by waiting to start your savings, check out this simple Savings Delay Calculator. It’s a real eye opener.