Celebrate Washington's Birthday By Saving A Dollar A Day
In difficult times like these it is hard to save money. But it doesn't take a lot. The FDIC, which insures money in bank accounts, created the table below to illustrate how putting aside just one dollar a day in a savings account with five percent compounded interest would grow:
| Money you would have at the end of the year | No Interest | 5% Interest Compounded Daily |
|---|---|---|
| Year 1 | $365 | $374 |
| Year 2 | $1,825 | $2,073 |
| Year 10 | $3,650 | $4,735 |
| Year 30 | $10,950 | $25,415 |
At the ten year mark you have made more than 30% on your investment of just a dollar a day. Here are ten ways to start finding that dollar to save:
- Empty the change out of your wallet and purse each day. Many grocery stores have change sorting machines that will exchange your coins for currency.
- You can't spend what you don't see. Use direct deposit or automatic transfers to distribute $30 or more of your monthly paycheck into savings or arrange to have the money transferred from your checking account to your savings account each month.
- Pay your bills on time and save the money that would have been spent on late fees, extra finance charges or disconnection/reconnection fees for services.
- Avoid check cashing stores unless you have no other option so that you can avoid the fees and keep more of your check for expenses and savings.
- If you get a bonus, cash gift or tax refund put $30 dollars of it or more into savings and you can take the rest of the month off from your saving a dollar-a-day routine.
- When you pay off a credit card or loan, keep budgeting that payment amount and put a few dollars toward savings while using the rest to pay down other debt.
- Not all money has to go in a savings account. If your employer offers a retirement plan, such as a 401(k) or 403 (B) plan that deducts money from your paycheck, join it. Many employers may match a part of your savings.
- Do it yourself and stop paying for convenience. Wash your own car each week and only splurge on detailing once a month. Polish your own nails in between less frequent manicures. Grate your own cheese, cut up your own vegetables and create snack packs from larger, less expensive packages of chips and cookies.
- Save $5 to $30 a week by keeping an eye on the sales and using coupons.
- Give up one lunch a week at a fast food or chain restaurant and you'll save your $7 or more for that week.
