Saving money isn’t something that just happens. For many people, saving money isn’t even something that comes naturally to them. I believe that people are born as natural spenders or savers. Not to worry. Even if you are born a natural spender, saving money is a process that can be learned. The key is to make an effort and start small, no matter the amount. Start by saving small amounts – even just a few dollars a month. Over time, saving money will become second nature to you, and you will have taught yourself how to become a saver.
Unfortunately, seeing the results of your saving takes time. You aren’t going to be able to save thousands of dollars overnight. However, every little bit counts. That is why saving money, even saving small amounts of money, is important.
The Importance of Saving Small Amounts of Money
There is a saying that if you watch your pennies, you won’t have to worry about your dollars. I believe this saying to be true. Constantly spending small amounts of money can add up to big expenses. For instance, if you spend $4 a day on coffee, 5 days a week, you are spending $20 a week on coffee. That equals about $87/month or $1,040/year on coffee alone. If you add a king size candy bar to that every day for $1.20, you are spending another $312 a year. So, for your morning coffee and snack you are suddenly spending $1,352 a year!
While spending small amounts of money can lead to big expenses over time, saving money in small amounts can lead to big gains over time as well. Did you know that if you save just $20/month starting when you are 20 years old, by the time you are 50 you will have saved $7,200. If you invest that money with an average rate of 10% (which is standard for the stock market over the last 70 years), you will have $41,256! If you invested until the time you were 62, you will have $134,845. If you continue to do this until the age of 65 (the current full retirement age for social security), that $20/month will have turned into $180,309!
On a smaller scale, my young daughter has been earning money for doing some light chores around the house. Each time she cleans up her toy room we have been rewarding her with some of our spare change. After she earns the money, we then have her save it in her piggy bank. Over the past few weeks, her savings have increased from just $2 to almost $10. (I think we need to lower her wage a little bit!)
As you can see, saving money, even in small amounts can really build up over time. Of course, you have to be patient and continue to save. However, if you can save even small amounts of money, you will see a significant savings over years and months. So, even if you are a natural spender, you can teach yourself how to become a saver. Get into the habit of saving small amounts of money starting today! After a while, your progress will motivate you to save even more!
Saving Money – The Giveaway
Speaking of saving small amounts of money, we are going to give you the opportunity to kick-start your savings! Over the next two weeks we are participating with a group of bloggers in a fun Rafflecopter giveaway. All you have to do is like us on Facebook, then, enter below and earn entries for a chance to win some cash money homes! There is a $25 cash grand prize and five $5 cash prizes! So, sign up for the giveaway and start earning entries today!
(For bloggers who are interested in joining this giveaway or future giveaways, please visit the giveaway project site.)