In an article, a financial columnist wrote about how it was possible to put away thousands by saving rather than spending $5 for a cup of coffee or some other frivolous item. That can add up to hundreds thousands of dollars over the years. Those funds you are saving can easily pay for a car, house, college or retirement.
Yes, it is that simple.
The easiest way to save money is not to spend it. There are many daily expenses that you probably do not realize you can easily go without. Chalk up a few of these at $5 a day, and you will be able to save millions over the course of your lifetime. This calculator helps you figure out the amount.
A way to compound the benefits of the savings is to cut out the expenditures that are harming your health. That will not only increase the amount of money in your bank account, it will reduce what you ultimately spend for medical treatment. The most obvious is cigarettes: if you smoke a pack a day, stopping will save you hundreds of thousands of dollars in the decades ahead. You will also be much healthier, happier and live longer.
You do not have to smoke, but you do have to eat.
Do it at home: it is cheaper and healthier. Trips to Starbucks and other restaurants are pinching away dollars from you and packing on calories. The Venti signature hot chocolate with whipped cream and whole milk from Starbucks weighs in at 690 calories.
Sodas are another costly item. These are one of the most profitable items for a restaurant. That means you are paying to make it that way for the seller. The easiest way for you not to be a major profit item for a restaurant or store is to stop drinking soft drinks.
Use credit responsibly.
There is nothing wrong with having credit cards. Used responsibly, credit cards are an excellent financial tool. The proper use can result in a high credit score, which saves you money on loans for houses, cars, and other items. Make sure you are not spending more money than you have, so the interest charges do not add up daily for you.
Joining a credit union can often times result in the cheapest credit card. A credit union can save on other financial costs. That is due to a credit union being a non-profit institution. Credit unions report to their members, not their stockholders. As a result, the service can be better. That means less everyday fees for accounts and lower interest rates for credit cards, auto loans, and mortgages for homes.
There is an old saying that the strongest relationships are not held together by chains, but thousands of little strings. That is what your relationship with saving can be like over the long term by cutting out the little items that cost you small amounts on a daily basis. Discipline is required by you, but not a sacrifice. Many of these changes made to save money will not only improve your financial health, but also your overall physical wellness. Making these changes will soon result in the savings adding up, rather than your daily expenses continuing to increase!
Photo Credit: Brad Briles