One night not to long ago I arrived home from work and emptied out my pockets. Keys, wallet, two bucks and change and some pocket lint was all I found.I left with $20 that morning and got home with nothing to show for it.
I decided to find out where my hard earned money was going. This is what I found: A coffee when I arrived in the morning, lunch, another coffee in the afternoon and a snack somewhere along the way. That was it, there was my money.
No grand scheme, or plan to make millions, I just thought I could save some money here.
I started by getting three things: an envelope, a travel mug and a food container. Took a twenty to work every day, but I also took my morning coffee with me and lunch on alternating days. Nothing extra, just last night’s leftovers.
Whatever cash was in my pocket went into the envelope. I work a six-day on, three day-off rotation. After one cycle I had $61. Not break the bank money, but substantial savings nonetheless. Approximately $2475 in a year.
That money is going to work for me! In my opinion IRAs are the safest , most effective tool available for retirement savings. Due diligence here. Some studies report a 10% yearly growth, while others report that due to inflation the growth is “only” 7%.
If were to contribute into an IRA, that $2475 could grow into $107, 940 in twenty years. Not bat for a total investment of $47,000. More than doubled my potential investment. See the calculator for yourself.
To me, all things being equal, frugality is the easiest way to save.