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You're Already a Millionaire!

million dollars.jpgA little goes a long way. You've heard it before, but have you ever really thought about it? If you're trying to get debt free and build a nice, little nest egg, that statement rings true beyond your wildest expectations. There are so many little ways you can save that add up to substantial savings. These, however, don't mean squat! It's the compounded value of your savings over the period of several years that will really mean something. You are saving, aren't you?

To really get you off your duff, here is what some of your savings will add up to over the long term.

Cutting back from two packs a day to one
Daily savings = $4.25, Monthly savings = $127.50

Bringing lunch to work instead of spending $8.00/ day eating out
Daily Savings = $5.00, Monthly savings = $110.00

Using regular gas instead of premium if you can (and most likely, you can) 1 x 20gal fill up per week.
Daily savings = $.71, Monthly savings = $21.43

Ditching all the premium movie channels – Don't worry, you can keep NFL Direct Ticket!
Daily Savings = $1.97, Monthly savings = $59.00

Doing the free things you should to save gas (properly inflate tires, no rapid acceleration, use less A/C, coast up to stop signs & lights, etc.) figuring 15,000 miles a year, a 15% fuel mileage improvement, and a vehicle that improves from 22mpg to 25.3mpg. Gas price average of $2.97/gal.
Daily Savings = $.72, Monthly savings = $21.60

Only eat out one night a month, instead of 4 – Dinner for 2 with inexpensive bottle of wine & tip = $62.00
Daily savings = $6.20, Monthly savings = $186.00

Raise your insurance deductibles from $250 to $500 – savings vary widely, but you could easily save 8% on your homeowners and auto insurance policies. Average insurance payment $250/month.
Daily savings = $.67, Monthly savings = $20.00

Shop at the warehouse grocery store instead of the big, national chain grocery stores. The savings can be huge. Most of the warehouse grocery stores have a wide selection and the same brands you'll find at the big chains, in addition to money saving house brands. If you currently shop at a specialty grocery store, shame on you, but you'll save even more by switching. Savings average 20% for a family of four's grocery bill of $600/month.
Daily savings = $4.00, Monthly savings = $120.00

Just doing these simple things can do more than save you money now. Take a look:

These savings add up to $686.96 a month! That's a huge number, and it's achieved without a major sacrifice or lifestyle change. I didn't even have you eliminate the morning Latte at Starbucks. To make it even more impressive, it's all pretax dollars, meaning that, depending upon which tax bracket you're in, you have to earn between $850 and $1000 a month to pay the $686.96! Wow! You just got that huge raise you've been asking for.

The most impressive thing is what happens when you compound those savings over a period of years. If you take the $686.96 per month and compound it over 25 years. If you earn 9% over that 25 year period, and invest the entire $686.96, it turns into an astounding $770,165.92! Holy Crap! If you stretch the period out to 30 years, you're a millionaire!! $1,257,647.54! This is on money you already make. If you're 30 years old, and start this now, you'd have a million invested before you were 60. That is addition to any savings plan, pension, 401K or 403 plan you may have already. Go to it!

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i think there is a fine line in saving everything you got and not enjoying life so you can be classified as a millionaire versus being able to spend a bit here and there and not so concern that you overspent a little this month because you were hanging out with some friends and/or family.

Very cool. Your examples don't all apply to me, but you're making me think of a few new ways we might be able to cut. For example, my husband's car is old and probably worth only a thousand dollars to the insurance company . . . so we probably don't need to be paying full insurance on it!

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