Today I’m going to show you the power of $50. You might think $50 isn’t good for that much–maybe a bag of groceries, a date night out, or a new pair of shoes–but it can really add up to a lot if you save and invest it right. If it’s all you can come up with, even fifty is nifty when looking at saving money ideas. Remind yourself that everyone has to start somewhere.
So what if you can start with just $50 a week? Don’t knock it. $50 per week can actually do a lot for you if you give it time. Bankrate’s investment calculator is a great little tool to use to figure out how you can turn a little savings into a lot of money down the road. For example:
- If you save $50 per week with 7% interest compounded annually, in 50 years you can retire with nearly $1.1 million dollars.
- If you stick $50 in your mattress every week, that money will become $2,600 each year.
See what a difference compound interest can make to your savings and investments? Even if you don’t invest it, $50 still adds up. What would you do with an extra $2600 per year? Are you interested in seeing how you can carve out just $50 per week and set it aside for later? Here are some saving money ideas:
- Cut the cable and use a much cheaper streaming service instead.
- Pay off debt and save the interest! Negotiate for lower interest rates on any credit card balances you’re carrying until you can pay them off.
- Cut down on the number of times you eat out.
- Trade babysitting with your friends so you each get a date night with no babysitter’s fees.
- Instead of eating lunch out, take a lunch from home. If you eat out every day and spend just $10, that’s a lot of savings right there.
- Shop around to make sure you’re getting the best deal on your cell phone plan.
Now take that extra $50 per week and save it! If you do it right, you can retire a millionaire.