|
The real impact of saving $5 a day |
Saving just $5 a day everyday can have an enormous impact on your financial future, according to syndicated Los Angeles Times
columnist Kathy Kristof. When it comes to this topic, everybody loves
picking on Starbucks! But people also blow a Lincoln a day on buying
breakfast or lunch on the go. For those who do come up with the extra
$5 everyday, here's how it can grow with interest over the years: After
10 years, you'll have $29K; after 20 years, it will be $105K; and after
40 years, a whopping $800K!
Some of us are so careful with our money that we couldn't come
up with an extra $5 a day. However, most of us could. Clark challenges
listeners to write down everything they spend money on while walking
around during the next 2 weeks. This will help you see where you can
trim your budget.
In addition to frivolous purchases, our inability to delay gratification conspires against our future financial security. Money
magazine reports that when people were offered $20 today vs. more money
about 6 months in the future, the people overwhelmingly took the $20.
In fact, people had to be offered money with an average interest rate
growth of 4,800% to get them to delay gratification! The only way to
overcome our innate bias towards immediate gratification is to set up
automatic withdrawals before the money gets to you -- like with a
401(k), for example. |
Buy an autographed copy today!
|
|
and happy bargain hunting!