Saving an Additional $10/Day

It's true, our consumer-driven economy relies heavily on constant spending to sustain growth. Marketing and advertising strategies are meticulously designed to influence consumer behavior, encouraging people to spend more. This can foster a culture of materialism where personal fulfillment is often equated with possessions. To an even further extreme, having possessions is not good enough. Possessions need to be as good or more impressive than someone else's. 

Here are some tips we hope will be easy to incorporate into your daily lives:

• Eat at home more often
  
  • Eating at home is much more cost effective. There is no tax or tip required. When you do eat out, order a free, healthy glass of water instead of soda or other unhealthy drinks. Tip modestly. Split meals. Use coupons. When you do cook at home, cook for a few meals, not just one.
• Grocery shopping
  
  • Use coupons and store discounts. A popular app is Flipp*. It's a quick way to see which grocery stores offer the best sales near your location. Look for grocers in your area offering lower-priced items than your big-box stores. Download their apps and buy more of the things that are on sale. When an item goes on sale, buy extra. If it won't spoil, buy even more.
    
• Never pay anything in cash
  
  • There are credit cards that can pay 2% on every purchase and other cards that can pay 5% on certain purchases at different times. If you pay with cash, you are essentially throwing away free money. However, this only works if you're responsible enough to pay off your credit card balance every month to avoid any interest charges.
    
• Keep your credit pristine
  • Always pay off your credit card debt every month in full. Never make a late payment. If you have a balance, call to negotiate a better rate or shop around. Keep one credit card for as long as possible. Pay off your credit cards with the highest interest rates first.
• Reduce the price you pay at the gas pump
  
  • Shop for the best gas price in town. A popular spot is Costco* but you can use apps, such as GasBuddy*, to find the lowest price near you. Some gas stations charge an extra credit card fee while some do not. Do the math to see which one is best for you. Look for large grocery store chains that offer gas rewards on your everyday grocery items through their apps. Purchase vehicles that are more gas efficient. Modify your driving habits to drive slower, brake less, and coast more. 
    
• Starbucks and other premium coffee shops
  • Make your coffee at home. When you order an ice drink, order a smaller size with ice on the side in a large cup. When you pour the coffee into the big cup, you will see you get a large drink for the small-size price.  
    
• Purchases
  
  • Take a few extra minutes and compare prices online.
• Track your cable bill and cell phone bills
  • These companies tend to increase your bill over time. When it happens, call them to protest. You would be surprised how often they are willing to negotiate a better price for you or give you rolling credit. Never hesitate to switch carriers, especially if they offer attractive signup offers.
• Utility bills
  • Contact your utility company to find out if they have any special offers to reduce your monthly bill. You may be able to reduce your bill by 40%!
    
• Gifts  
  • Don't be too generous. It's the thought that counts. If you're hosting a party, tell your guests that gifts aren't necessary.
    
• Think twice before buying a brand-new automobile
  • New autos are much more expensive to insure, repair, and register. In addition, new vehicles depreciate as soon as you start driving them. Consider buying a used car in good condition with low mileage. Pay in cash unless interest rates are extremely attractive. Consider selling a used car to a private party instead of a dealership. Consider increasing your insurance deductible to lower your insurance premium.
    
• Avoid bad habits
  
  • Stop smoking, drink less alcohol, avoid drugs, and abstain from behavior that is morally, ethically, and legally wrong. Stop or reduce the amount spent on material items that won't appreciate in value over time.
• Stop overpaying for brand names
  • Some brand names are ridiculously overpriced. When overpaying for a brand name, you’re wasting money unnecessarily.
• Reduce your housing expense
  • Buy or rent responsibly. If you can reduce your mortgage or rent by $150/month, that's $5/day. Consider a roommate or renting a room out as a short-term rental. One of the more popular services is Airbnb. Refinance your mortgage when appropriate. Know and understand the Section 121 capital gain tax exclusion. Know the difference between holding property as CPWROS versus JTWROS in a community property state.
• Consider a side hustle
  • Starting a small, part-time business can create income taxed at a lower marginal tax rate due to the tax benefits created by our current tax regulations. If you can't start a business, consider a part-time job that you enjoy. (For a few side-hustle ideas, you can watch this video: https://youtu.be/SJCPiRD77Fc.)
• Maximize your library resources
  • Libraries can be a great resource for discounted items well beyond books.
• Join the Auto Club and AARP
  • Auto Club and AARP memberships offer many perks and discounts offsetting the cost of their membership. It's also comforting to know you have roadside assistance coverage with AAA.
• Student Loans
  • Consider switching to the new SAVE repayment plan for your student loan. For more information, visit studentaid.gov/announcements-events/save-plan
    
• Minimize costly leisure travel, hobbies and activities
  • Pay yourself first (savings plan), then pay all your bills and reduce your debt. From there, plan your leisure travel, hobbies, and activities using your disposable income. If you don’t have excess disposable income to cover the costs, you’re living beyond your means.
• Consider not paying more than your minimum payment on debt
  • This depends on your debt's current interest rate and your risk tolerance if you invest those extra payments over time. If you comfortably feel investing will give you an equal or better rate of return over time, you may be able to pay off your debt sooner by investing your extra payments than making extra payments on your debt.
• Avoid unnecessary fees, charges, and fines
  • Utilize auto pay to pay your reoccurring bills to avoid late-payment fees. Keep a cash cushion in your checking account to avoid NSF fees.
• Reallocate the time and money you spend on entertainment activities
  • Consider reallocating that time and expense and reinvesting it in yourself by expanding your knowledge and adding to your qualifications, credentials, licenses, or professional designations.
• Cancel unnecessary subscriptions
  • Canceling subscriptions rarely used or not used is an easy way to free up a few dollars each month. If they are necessary, shop for lower-price alternatives.
• If you're active military or a Veteran, always ask for a military discount.
  
• If you're a senior citizen, always ask for a senior discount.
• Minimize your taxes
  • Try to find a tax preparer who also does tax planning or consider working with a Certified Financial Planner.
• Buy used versus new when possible
  • Used items tend to depreciate less in value. Visit your local thrift stores and check online for free stuff, especially if you're a new parent.
• Be responsible and obey the law
  • Small fortunes can be lost on fines, lawsuits, and attorney fees. If you have a nest egg worth protecting, consider additional liability insurance, known as an umbrella policy.
• Save in tax-qualified accounts to leverage your savings
  • Tax-qualified accounts may offer tax incentives. They may reduce your tax bill, defer tax on investment gains, and/or offer tax-free distributions.

For most people, saving and spending are habits. To change your habits, consider looking at money differently. Instead of looking at it as a means to buy stuff (materialistically), look at it as an investment that, if saved, will compound exponentially over time. Don't look at what something costs; look at it as the “opportunity” cost - the opportunity of that investment increasing in value over your lifetime had you not spent it.

How much and how long would it take to accumulate a million dollars at 8% compounded daily?

• If you saved $10/day, it would take approximately 40 years.
• If you saved $20/day, it would take approximately 31 years.
  • In 40 years, you would have $2,146,558
• If you saved $30/day, it would take approximately 26 years.
  • In 40 years, you would have $3,219,837
• If you saved $40/day, it would take approximately 23 years.
  • In 40 years, you would have $4,293,117

If you have other great savings tips, please let us know so we can share it with others. We would love to hear from you.

_{* We are not affiliated with, paid by, or promoting any business. Any information provided is provided as a courtesy and we recommend doing your own due diligence to ensure this is the best option for your unique situation.}

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