You are earning less than $50000 a year. Your retirement fund below $5000. You’ve been living paycheck after paycheck. It is time to change all that. In this series, you will find out that saving for the future does not have to be a big lifestyle change. We have read articles regarding cutting back on almost all caprices in life. If that’s how we save money, maybe there is a problem. It is important to look at saving money in a day to day aspect. If you look at it that way, it might be possible to save just around 3 dollars every day to save $1000 in 1 year.
It’s in the math
When you calculate the work week of a regular employee, there are 5 to 6 work days in one week. Multiply that with 4 weeks in a month and you get 20-24 working days a month. Multiply it by 12 months and you get 240-288 working days in 1 whole year. Our target is $1000. If you save an average of $3.5- $4.2 a day, you can accumulate a total of $1008. You can say that it is an ideal situation since most of the time, people are spending way beyond their means. However, by taking that effort to save those 4 dollars every single work day for a whole year that could mean a big amount in a few years.
Cutting on the corners
How about saving on electricity and water? How about you save on extra snacks and food? The simplest way to save 3 dollars a day is to create a solid budget. If you know on average how much you pay for bills and for other needs, then it is possible that along the way, we have extra money that we sometimes feel that are not too relevant. Effective budgets will be able to help you save from a few dollars to hundreds of dollars.
Start now
Once you begin earning or receiving money, that is the time you should start stashing those 4 dollars every day. That is a small amount that you need to invest everyday and since you do it every day, it can easily become a habit. If you develop the habit of saving the money and putting it on the bank every month, then imagine how it will grow in 5 to 15 years with the addition of the interest that you earn? That is something to think about in order to really invest something for the future.
