True Savings PROJECTIONS

The biggest reason most people don’t save much money is because setting aside a few dollars doesn’t feel like monumental feat.

The emotional rewards from spending money, instead of saving money, appear more vivid and numerous.  Previously, we’ve talked about how $10 spent today could have become over $160 in a lifetime of savings/investments/payouts.  While that’s cool, that number can also seem just under the bar to insight explosive enthusiasm.  With large numbers involved, we begin to FEEL what saving and investing really means.

Most people think in terms of monthly bills:  we easily think of money in terms of hundreds or thousands of dollars.  We get foggier with smaller amounts of money, especially when talking about the money required to live for just one day

Our bills train us to ignore the smaller expenses: every month our bills reinforce our concept of money.  Rent or mortgage sets the pace, and we usually thinking in terms of $1,000.

It takes a few steps to re-phrase the way we FEEL about $1, $5, or $10, because our gauges are off.  Spending an extra $3, $6, or $11 on a daily basis doesn’t FEEL like much of a problem.

Let’s break down DAILY COSTS for the minimums of life, this will help us regain clarity to FINE TUNE our idea of money – not that we aren’t aware of this stuff.. but it’s time to FEEL IT!!!

MONTHLY BILLS translated to DAILY COSTS

$1000 a month rent ———— $32 /day
$100 cable/modem bill ——– $3 /day
$200 utilities——————– $6.50 /day
$250 car payment ————– $8 /day
$200 gas ————————- $6.50 /day
$150 health insurance ——— $4.8 /day
$60 car insurance ————– $2 /day
$200 entertainment ———– $6.50 /day

After Gazing over those numbers, we see that spending an extra $10 a day would over-right the ability to save $350 a month.  $350 is a great monthly savings amount, and would translate to huge retirement funds over time.

Saving just $6.50 a day would lead to a $200/month savings, which would be revolutionary and lead to an excellent retirement with Social Security on top.

These Daily Cost numbers don’t feel like they carry the same impact as staring at our monthly bill numbers.  Owing $20 or $40 a day just to live is odd to think about, and it’s somewhat depressing – our minds tune it out.

People usually have a lot of FAITH inscribed in the way we handle money. We get  jobs, get that paycheck, get a place to live, and it just works out… looking too closely brings back that unpredictable feeling.  Seeing the fine gears of our financial lives is a bit bizarre.  Great Savers learn to see and FEEL those gears, and to feel those individual dollars in action, and Great Savers sense the effect of spending towards the potency of their savings account.

Saving $200 a month is like saving $6.50 a day…
OR it’s like saving $1,200 twice a year…
OR it’s like saving $4,800 once every two years…
OR it’s like saving $12,000 every five years…

It can seem easier to save $6 a day, than to save $12,000 every five years, right!!!???  We take on bills in the inverse manor, we accept huge numbers in the long-term, and ignore how those bills break down into very small daily numbers, like $5 or $10 a day.

Rent per year: $12,000
Rent per 5 years: $60,000
Rent per 10 years: $120,000

In ten years of renting, we can easily spend as much as the cost of a house: it’s the ultimate tragedy, but people everywhere deal with it because Big Commerce has the reigns of our country: people do it because it seems they have to…

Establishing a clear path of savings requires smashing and examining some of our concepts of cash.  We can cut out some of the excess spending, and create daily savings, weekly savings, and watch them snowball.

Money is like a seed, if we plant it on our land, it will grow:  so many people are just throwing all their seeds away. Those who receive the benefit of such exchanges, such as businesses, are using those seeds to harvest a butt-load of financial stability!

Every time we take on a habit that costs an extra$4, or  $6.50 a day, we are eradicating a MONSTROUS SAVINGS ACCOUNT….

$4 a day = invested for 30 years at 6% interest equals $124,696
using that money to pay you 6% for 30 years to follow equals $7,481 per year thereafter,
so for the following 30 years, that would be an additional $224,452
plus, you would have the original amount, so you would lose $349,149
— just by blowing $4 a day on something stupid.

$6.50 a day = invested for 30 years at 6% interest equals $202,632
using that money to pay you 6% for 30 years to follow equals $12,157 per year thereafter,
so for the following 30 years, that would be an additional $364,737
plus, you would have the original amount, so you would lose $567,369
— just by blowing $6.50 a day on something stupid.

$10 a day = invested for 30 years at 6% interest equals $311,742
using that money to pay you 6% for 30 years to follow equals $18,704 per year thereafter,
so for the following 30 years, that would be an additional $561,135
plus, you would have the original amount, so you would lose $872,878
— just by blowing $10 a day on something stupid.

That’s the power of small amounts of money – the vitality and possibility is staggering really.

There are only a few questions that need to be asked:

What am I already spending money on, that can simply be diverted to savings right now?

Can I D.I.Y. something to save a few blocks of money per year? (entertainment, repair something?)

Can I downgrade something, a monthly expense, and create a savings pool out of that?

Small bits of money really add up.  Those seeds will become your future…

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