We’ve all heard the saying, a penny saved is a penny earned. But that doesn’t really seem impressive given that one penny saved for every day of the year only yields $3.65 at the end of 365 days.
What are you going to buy with that:
1) One trip to Starbucks (if you go cheap)?
2) Three dollar menu items from McDonalds!
3) Or, if you save that $3.65 until another year has passed, applying the same method, you now have $7.30!
Alright, I am not bashing the idea of saving money, I’m really not. So let’s tweak the numbers a little and see what we come up with.
(Yeah, that penny a day theory is looking pretty weak right about now.)
On the upside, even those of us who are so broke we don’t think its possible to save anything just might need to think again.
Look at the numbers. Most people can at least afford to spare a quarter ($.25) a day. C’mon, that’s only an average of $7.75 a month, but after a year you will have $91.25! Maybe that doesn’t sound awesome, but if someone offered to give you $91.25 (no strings attached) you’d take it! Who wouldn’t? Bottom line is, even a quarter adds up to something significant.
What about the $5 dollars a week? That’s only $20 a month ($25 on the two odd months with an extra week) but after a year you will have $260. Would you turn down the $260 if it was just offered to you outright? Nah, I didn’t think so.
It’s kind of weird to think about saving money on an hourly basis, but here goes. If you can afford to save a nickel ($.05) an hour for a year, you will have $436.80. This breaks down to $8.40 a week/$33.60 a month. There it is, that’s all. Can you believe it? For the cost of a cheap weekly meal at McDonald’s, you could save over $400 in a year.
Now if that became a dime ($.10) an hour for a year which totals $873.60, we’re talking about $16.80 a week/$67.20 a month. Higher stakes and harder to do I know, believe me, I’m not there yet myself. But talk about nickel and dime-ing it! If I listen closely, I can almost hear the “ching ching”.