Seriously though, it really is that easy. $5/day = $150/mo = $1,800/year. Multiply that by 40 years @ 10% compounded interest (within a tax-deferred account) and you’ve got yourself a cool Mil! At least according to Money Mag’s Millionaire Calculator, and other sites around town. And sure, you have to account for inflation and yada yada yada, but the point is if you SAVE CONSISTENTLY you will eventually hit your goals of reaching $XXX in the bank.
So if it’s indeed so easy, how come no one does it? It’s just $5 right? I mean, I blow that in lottery tickets & bananas alone every day! Haha….okay, well I’m not that bad, but I def. go through $5 on *something* every day without a doubt.
I think the hardest part here is really a) BELIEVING this will work, and b) putting it into action.
Were any of you around when I shot for that $1/day challenge? I think it might have been one of my very first posts actually :) And I lasted a month, if that. But I think what I did wrong then was physically taking out $1 from my pocket every day and dropping it into a cup @ work. Whenever I had money on me it was fine – even if I had to walk around asking for someone to break a $10 or $20. It was the *remembering* part that killed me. My brain just couldn’t handle it! And when it could, I’d feel bad for missing so many days that I’d then drop a $5 into it or whatever to make up for lost time, and it would kill my mood (even though I still knew it was “my” money).
What I’m trying to say here is that it was all easy in theory, but pretty hard to put into practice. Now if you automated it, we’d be in a whole new ball game! Not on a daily basis because your bank would kill you for it (and you’d get charged up the a$ with who knows what kind of fees), but you could certainly automate it monthly. One $150 deposit straight into your Roth IRA or other investment vehicle every single month! Not only would it be WAY easier to stay on top of, but overtime you’d likely forget all about it… Until you wake up one day – all gray and crotchety-like – and you realize you’re a bona fide millionaire!
And guess what? 99% of you reading this right now can make it happen. So get on it buster! Get motivated, start automating, and join us in the Million Dollar pledge. All it takes is $5 a day ;)
PS: Some of my favorite tools:
|Personal Capital (FREE) -- If you’re looking for a robust financial tracker, Personal Capital is the way to go! They’re like Mint, but on steroids and have much better tools for investment and net worth tracking. // Full review|
|Digit (FREE) -- A super easy (and automated) way to save. Every day Digit analyzes your income and expenses and will push money aside for you any time it sees extra sitting there. I've saved over $4,000 myself using them so far! // Full review|
|Acorns -- Having trouble finding money to invest? Check out Acorns – they round up all your transactions to the nearest $1.00 and drops the difference into an investment portfolio for you. Easy way to start investing! // Full review|