Some of you may be getting Christmas bonuses, some of you may be getting an increase in salary and some of you may not be getting any additional compensation at all. Whatever category you find yourself in, make a sacrifice and save something. Some of you may be saying how can I save and I am not even making enough to cover my expenses. As you approach 2020, adopt a new attitude when it comes to your finances by implementing a savings plan and making significant sacrifices.
The $1 a day Challenge
Here is the challenge for 2020. At the end of each day, put aside $1 in an envelope. At end of the January you would have accumulated $31. Deposit that $31 dollars in the bank. Do this for the rest of the year and you would have $365 a year. Assuming there is no interest on it, you would have $3,650 in 10 years and $18,250 in 50 years. Imagine now getting interest on your $1 a day savings. If you earn 2% interest, you savings would be $4,250 at end of 10 years and $31,357 at the end of 50 years. While this is not a lot of money and will not make you a millionaire, it is better than nothing. Too many people do not have anything at all and $1 day will allow you to have something. Therefore I encourage you to try this for yourself and your children. Once you are comfortable with saving $1 a day, increase it to $2 a day then $5 a day and then whatever you need to reach your savings goals.
In order to save something, it will require you to make some sacrifices and have some control. Too many times, we spend money just to buy a soda on a daily basis. Soda is not good for you anyway so why don’t you use that $1 and put it in your savings envelope. Almost every day we are eating out for breakfast, lunch or dinner. Try buying the ingredients and make these items at home. Compare to what you pay for dining out and see if you are saving anything. If you are saving then discontinue eating out daily and put that extra money into a savings envelope. Take your lunch to work. If you insist on eating out then buy a small lunch rather than buying a large lunch. Even if you buy a large lunch, split it with your co-worker or spouse to save something. Drink water for your drink. I believe most of the workplaces have complimentary water for you. This can save you a $1 as well. After all water is important for your diet. When it comes to clothing, make a sacrifice in 2020, don’t purchase any new clothing. Examine what you have in stock and do a mix and match in your dressing outfits. I know sometimes the airlines provide some good deals on travel, don’t fall for it. Forgo those trips and put aside some funds for savings. Finally, you may want to consider putting your children in a public school and put money in savings account towards their college funds.
I know the cost of living is high, people are living from paycheck to paycheck and some people are not even working so it is a challenge trying to save something. However you can start small even if it is only $1 a day. I really believe we can all save a $1 day. You may be employ today but unemployed tomorrow. You may be well today and sick tomorrow. The economy may be booming today but slowdown tomorrow. You never know what tomorrow may bring so let us try to save something.