How many times do you spend $5 each day? That morning coffee, a quick sandwich at lunch, a snack at the gas station after work, or a drink out with friends at night can all cost $5 or more. What if you decided to not purchase one of those items each day? What if you made your coffee at home instead of buying it at a fancy coffee shop? What if you packed your own sandwich or decided to get water instead of a coke when you went out at a restaurant? Many people will say they don’t want to give up life’s little luxuries, but here’s what could happen if you did and saved the money instead.
You could take the $1,825 and invest it. Even if you add nothing to it, you could reap significant rewards. A very conservative estimate if your investment earns 4% and is compounded once a year shows that you could have $147,000 after 35 years. All you would have to do is give up life’s little luxuries for 1 year, invest that amount, and theoretically let it sit for 35 years.
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If you saved $5 a day for a month, you would have $150. With that money you could do the following things:
- You could buy a new smart phone.
- You could buy a new bike.
- You could buy a brand new outfit.
- You could buy a really expensive pair of shoes.
- You could pay your friend back.
- You could buy your books for school.
- You could have a nice day at the spa.
- You could purchase birthday gifts for 5 friends or family members.
If you saved $5 a day for six months, you would have $900. With that money you could do the following things:
- You could finally repair your car.
- You could pay for a month of rent.
- You could buy a plane ticket to New York City for two.
- You could pay for your gas for 3-5 months in cash.
- You could get ahead on your electric bill.
- You could finally start that emergency fund.
- You could pay off your credit card.
If you saved $5 a day for a year, you would have $1,825 dollars. That amount of money could get you the following items.
- You could go on a really nice weekend vacation.
- You could finally buy your girlfriend that engagement ring.
- You could put a down payment on a car.
- You could donate it and make a difference to a charity of your choice.
- You could pay for a college class.
- You could fully fund an emergency account.
- You could finally see the Leaning Tower of Pisa.
- You could buy a really nice watch.
- You could pay for 2-3 months of rent in cash.
You could take the $1,825 and invest it. Even if you add nothing to it, you could reap significant rewards. A very conservative estimate if your investment earns 4% and is compounded once a year shows that you could have $147,000 after 35 years. All you would have to do is give up life’s little luxuries for 1 year, invest that amount, and theoretically let it sit for 35 years.
With $147,000 to spend, you could not only change your life, but the lives of your family. With that you could do the following:
- Pay for a modest home in cash.
- Send all three of your kids to college.
- Go on a luxury trip around the world with your spouse.
- Start your own business.
- Invest even more and make even more.
- Buy an outrageously expensive car.
- Quit working for 5-7 years.
- Pay off all of your consumer and student loan debt and that of your children.
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