We Call BS on Saving!
We are surrounded by ads and signage every day that are telling us just how much we are saving on every purchase. However, are you really saving anything if you would not have paid the original price in the first place?
The answer is NO!
And what about those items that you truly are getting a good deal on… Are you actually putting that “saved” money in the bank? Or is it simply a number at the bottom of a receipt?
To truly save on a purchase you need to make sure that you actually invest those little everyday savings.
So, don’t wait until you have a large windfall before you begin investing and saving towards your future. There are many little ways in which you can put some money away each day that will add up quickly and get you to Freedom faster!
Here are a few to get you started:
Start a Coin Jar
As a child I spent a lot of time with my depression era grandparents, and one of the things that I learned from them was every penny counts. That’s why I still to this day follow my grandfather’s lead and place my change from the day into a collection jar that is stashed out of sight. By stashing my jar away so that it is out of plain sight, the temptation to dip into those readily available funds is minimized, allowing these funds to grow.
You will be surprised to see just how much money you accumulate in a short period of time by emptying the change from your pockets or the bottom of your purse each evening into your collection jar. My last jar was only half full and when I deposited it, there was over $40 in there. That is $40 that will be working for me in cash flow producing investments!
Establish a routine of at the end of the week or monthly where you take the jar and its contents to the bank and deposit it directly into your “Future Self Fund”
Once you see that these pennies, nickels, and dimes are starting to build up to a point that investing it is now an option, locate a safe to moderate risk investment to invest this money into, in order to increase the amount of return you are receiving on this money.
Most importantly, make sure to invest in Cash Flow producing investments – see this article here from Dr Tony Pennells to understand investing more.
Get some Exercise and Recycle
Another way to find extra money for the retirement fund is through recycling. Sadly there are far more people out there throwing their empty cans and bottles out than picking them up. That’s where you step in, take an afternoon walk several times per week, with a large trash bag, and pick up all of those cans and bottles that you see lying alongside the roadways. It won’t take long before you see the pounds melting off as well as have quite a collection of cans and bottles to take to the recycle center.
After you complete your trip to the recycle center and have your cash in hand go directly to the bank and deposit these funds into your savings account, so that you are not temped to spend this money frivolously.
Doing this creates an additional regular form of investment into your accounts, and should not replace your auto-deposits that you have set-up.
Clip Coupons and Invest the Savings
When preparing for your weekly or monthly grocery shopping think about what you need and search out coupons both through circulars and online. Couponing is a win-win situation when done correctly. You are often able to get more of what you need and for less than you would have paid otherwise.
The main thing here is to deposit those savings rather than spend them elsewhere; and to make sure that the time you are spending on couponing is worth the financial savings, otherwise you have just wasted valuable time which defeats the saving process entirely.
When you get home, find the “you saved this much” section that most stores print at the bottom of their receipts and transfer that much from your checking account to your savings account.
Doing this turns those fictional savings into actual savings and avoids losing out on some of your savings due to misplaced receipts. Doing this immediately also speeds up the pace at which your money begins to work for you, by starting the interest earning process right away.
Bonus Tip: Remember Interest Counts
Obviously a higher interest account is better than one that pays less interest or dividends.However the point here is that ALL interest is important.
Interest and dividends are the income you receive from your money working for you.
Two things to remember about interest:
- The longer your money is in the account the more interest it earns.
- The higher your balance the more interest your money earns.
This means that as your balance builds the interest you accrue will grow as well; don’t wait to deposit even small funds, because every day that those funds are not in the bank, they are not earning interest.
Even the smallest amounts add up, and making your money work for you is the fastest way to get to Freedom and have enough money coming in without you working that you are able to comfortably live on.
The views and opinions expressed are those of the guest author and do not necessarily reflect the views and opinions of MindShift.money.
There are 2 comments
great article on saving. Truly taking the savings earned and placing it to work for you is the best way to reach freedom faster!
You got it!