Tuesday, October 16, 2007

Free Money Finance: Pennies Add Up to Millions

Free Money Finance has two good articles stressing the importance of small things:

Free Money Finance: Pennies Add Up to Millions:
"...$5 a day over 40 years and invested at 10% yields almost $1.1 million. Is
your daily Starbucks coffee worth a fully-funded retirement when you can drink a
cheaper version of the same thing that costs a fraction of the price? This is
the heart of what Bach talks about. And this is the heart of the post
highlighted above -- a belief that I agree with. No, I'm not saying that you
can't spend on luxuries or other things that make life fun/worth living. Who
would want to live that way anyway? But I am saying that we all have some little
bit of spending we could do without and if we do choose to do without it, saving
and investing that money can add up to a big sum."

and then how to save some of that money ...

"Yahoo Finance has a list of ten money drains along with the annual costs of each of them. I view this as a list of where we all can save a bundle of money. Here's their list as well as
the annual amounts spent on each of them (in other words, what you could save if
you eliminated them):
1. Coffee -- $360 per year.2. Cigarettes -- $1,660 a year.3. Alcohol -- $3,650 per year.4. Bottled water from convenience stores -- $365 per year.5. Manicures -- $1,068 per year.6. Car washes -- $348 per year.7. Weekday lunches out -- $2,350 a year.8. Vending machines snacks -- $260 per year.9. Interest charges on credit card bills -- $4,868 in interest (over
time).10. Unused memberships -- $480 per year"

1 comment:

FMF said...

Thanks for noticing my piece!