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Example 2: Daily Occurrence Money Saving Opportunity

Let's examine your cash spending habits every day. You buy a coffee and bagel from Starbuck's before going to the office and then around 3 PM you grab a latte and a fitness bar. In many metropolitan areas those four items can set you back $11 or more. Let's say you buy in bulk and bring some with you and go to the closet place instead of Starbuck's occasionally. You see a savings of $6 per day on average. Why on Earth would you go out of your way to save $6 per day?

 

For Frequency, choose "Daily".

 

For More Expensive Choice, enter $11.

For Less Expensive Choice, enter $5.

This gives us a difference of $6.

 

Now we'll choose our Investment Type.

Let's toss it in stocks at 10%.

 

For Current Age, we'll make our example 28.

For Future Value Age, enter 38 to see the savings over 10 years.

Processing Years is set to 10 (38-28).

 

The financial calculator runs these figures through an Interest Formula and the result is shown in Future Value.

 

Do you have a guess at what the $6 per day is worth when invested for 10 years averaging 10%? You're not going to believe it. You're simply not going to believe it. $38,393. If you are carelessly throwing around cash every day, look what you can accomplish by becoming a disciplined saver and investor. If we take this experiment out to 20 years, the total jumps to $137,975. Doesn't that sound better than $6 per day? How can you not want to run out and open some type of investment account? Don't ever ask "Where can I start to save?" again.

 

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