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 ;)
Jay loves talking about money, collecting coins, blasting hip-hop, and hanging out with his three beautiful boys. You can check out all of his online projects at jmoney.biz. Thanks for reading the blog!