What’s the best way to save money?
It may surprise you that, in the long-term, effective saving may require a small rather than a large commitment on your part.
You don’t believe me?
Consider this example: let’s say that you are in the habit of having a mid-morning snack. Let’s say that you get your mid-morning snack from the vending machine at work and it consists of a soda and a candy bar. The soda is $1.00, the candy bar is $.50. The total cost for your daily snack is $1.50, or $7.50 a week.
Now, let’s say that you decide to eliminate the snack. Not only will your waistline thank you, but your wallet will too. Here are the figures: your weekly savings are $7.50, your monthly savings are $30 ($7.50 x 4), your annual savings are $360 ($30 x 12).
But wait, let’s look at the long-term effects of your decision to give up the snack! Without considering interest earnings, after 5 years you will have saved $1800 ($360 x 5). After 10 years it will be $3600 ($360 x 10), and after 20 years it will be $7,200 ($360 x 20).
Imagine that! $7,200 from eliminating a daily snack habit that you are probably better off without.
If you examine your own habits, you will probably find lots of other small habits that you can change in order to save money.
Contents (c) Copyright 2007, Laura Spencer. All rights reserved.