$5.50 can probably buy you a hamburger and french fries or a large gourmet coffee drink. Maybe $5.50 can even cover one movie rental. What if I told you that $5.50 could buy you a new car, a down payment on a home or a college education? What if you could turn $5.50 a day into $32,000 in ten years (assuming a 10% interest rate)?
If you saved $5.50 every day, in one year you would have over $2,000. In five years, if you were to continue to put that money in a 10% interest bearing account, you would have $13,000.
Saving money can be a difficult task. It requires hard work and discipline. Many times people set very high savings goals, which can work out well. However, if a goal appears to be unreachable, many people give up before even trying to accomplish it. Setting small daily goals, such as putting aside $5.50, makes a goal seem more obtainable.
Examine your daily spending habits to see where you can find an extra $5.50 to put into savings. You may want to consider bringing your own lunch to work instead of eating out or brewing your own coffee and forgoing the expensive coffee drinks. Consider carpooling to save money especially with the rising gas prices. If you have trouble finding that extra $5.50, keep a journal for one month. The journal can be as simple as a note card in your wallet. Each day, write down all of your expenditures, even vending machine purchases. At the end of the month, review your journal to find ways to cut back.
After reviewing your spending journal, you may find that you can put even more money aside each day. Or if you have a savings goal in mind, determine how much money you need to save on a daily or monthly basis.
Now that you have found money that you can save a certain amount each day, how exactly are you going to save it? Running to the bank to deposit $5.50 every day is most likely out of the question. Instead, consider setting up automatic daily, weekly or monthly transfers from your checking account into your savings account. Another option would be to use a money jar” or other such savings tool. Whichever savings route you choose, it is important that you stay disciplined and soon you will be able to watch your savings grow.