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.

I am not a financial advisor. I hold no fancy degree and as such this is not financial advice.  This is simply what I have done and recommend my children do when the time comes.

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