Are you somewhere between the ages of 25-35 and have yet to start a serious retirement plan? Maybe you haven’t started an IRA or taken advantage of your company’s 401k because you can’t ever save enough for it to be worth it? Well I’m here to wake you up. By saving JUST $10/day, every day, you could be sitting on $1,190,736.73 by the time you are retired. Don’t believe me? Do the math on your own using the following compound interest calculator, a 35 year future retirement date and an 10% as the average rate of return: http://www.moneychimp.com/calculator/compound_interest_calculator.htm.
Now that you’ve seen it with your own eyes, how about some great ways to save $10 a day!
(many of these are to be used in conjunction with another item on the list so your savings can total $10 a day)
1.Food- If you spend $15 a day eating out and can cut back to $10 a day…thats automatically $5 you’re now putting away. Grocery shopping – Go for the sales. Bring your coupons. If you just saved $30 a month from your grocery budget that would translate into an additional $1 a day.
2. Cel phone- if you can cut your monthly bill down by $30 a month = $1 a day
3. Hair- Men skipping the line up every other and thats $5 every two weeks you could save. Women- substitute one week of going to the salon (lets say $40) for do it yourself maintenance = $1.50 per day. The type that spends $60 a visit? That equals $2 a day.
4. Nails- do your own nails or cut back how many times you go- $30 a month or $1 a day
5. Experiment with unorthodox savings tricks. Buy a bottle of juice or soda when you are at the fastfood spot and instead of spending $3.99 for the “value” meal all you have to do is buy the burger/sandwich ask for a cup of ice and spend $2-$2.50. Thats about $2 a day in savings alone.
6. Clubbing. With outfits, outfit accessories, gas, parking, sometimes entrance fees, drinks and we wont even mention potential DUIs the average LA clubgoer could easily spend on average $100 a night. You go friday and saturday every weekend for a month and thats $800 a month on entertainment. Just by cutting down your clubgoing by half would save $400 which translates to $13 a day. Lets say you already only go once a weekend and you cut it down to once every weekend you’d save $200 which =$7 a day.
7. Keeping better track of your payments and account balances. If you have a ton of accounts and you on average make a mistake and either mis the payment date on one or go overdrawn on your bank account that at minimum could be $30 or more. Just keeping track of your accounts would allow you to save $1 a day.
8. Cable – cut back some channels, cut back some features. Do you really need DVR? Do you even have to have cable at all? Save $30 on your cable an that translates into $1 a day
9. Rent- Do you really need a deluxe apartment in the sky? Until you own property why are you living like you do? On average a person spending $1000 or more on their rent cutting back to a smaller apt for $700 could save $300 a month. That translates into $10 a day! Cut back even more and rent a room somewhere and let someone else worry about the hassle of property management you could potentially save $500 a month which translates into $17 a day!
10. Maintaining storage. Is the stuff you keep in storage realyl worth the $50-$60 bucks a month? Why not list it on craigslist and keep the smaller important things in your home? Getting rid of your storage space that you may have even forgotten about can save you $2 a day.
11. Work hourly and you’re calling in sick when you really wanted to take a beach day? Not only are you spending money on whatever you are doing that day, you’re loosing out on the hourly wage you would have been earning that day!. Maintain your complete work schedule until you are full time and you may end up placing $150 or so back into your pocket. That translates into $5 a day.
12.Trickin. Fellas.. you buy the rat at the bar a drink whos probably not coming home with you anyways and you could be spending $7 a pop. Two girls a night, one club night a week for a month and thats $56. That translates into $2 a day you could be saving. Lets say you DO get her to come home with you and you fall in love with the broad. Now you’re at the mall gettin her nails did and buyin her brand new Guess outfits at $80 a pop. Then you take her to expensive dinners every other weekend at $60 a pop. Trick at the mall and at the dinner table twice a month and thats $280 that could go back in your pocket or for a girl that REALLY matters. That translates into gues what..$10 a day!
13. Gym fees. Have a monthly membership and you dont even use it? Or you do use it but its
stuff you could be doing at home? Invest in a $100 treadmil or run/bike ride around the block and you could save $50 a month in gym fees.That translates into $2 a day.
14.Clothes- H&M. $12 designer-esque shirts? Nuff said.
Stay tuned for my future post regarding all you need to know about retirement accounts