Saving money is difficult. Even saving 1% of your paycheck can be a challenge. However, this percentage can have a huge impact on your ability to retire or become debt-free.
For example, let’s say you are 25 years old, make $40,000 a year today, and never get a pay increase from that salary. 1% of that would be $400 a year / $33.33 a month / $7.69 a week. To save this amount it could mean eating out one less time a week, skipping buying a few articles of clothing a month, skipping one night on the town a month, or many other options.
So, instead of spending that one percent of your paycheck you invest the money in the stock market.
On average the stock market has a return of 8% per year, or 10% if you
reinvest the dividends. Dividends are a sum of money paid regularly (typically quarterly) by a company to its shareholders out of its profits (or reserves). Assuming you get a 10% return on your investment, by the time you are 65 the 1% you save monthly would be worth roughly $195,000. All from 1% of your paycheck. Continue reading Here’s What Saving 1% of Your Paycheck Could Do…
Recently I came upon a statistic that said roughly 47% of Americans would not be able to cover a $400 emergency. I’m going to guess that number is higher for millennials than older generations. A $400 emergency could come from so many avenues: vet bills, hospital bill, car trouble, job loss, etc. Having an emergency/rainy day fund is always important to have, just in case life throws you a curveball.
Saving money is hard, so below are 5 ways to easily save money in order to build/add to your emergency fund.
#1 Price Match
Thanks to Amazon, and other online retailers it is incredibly easy to compare prices before you make a purchase. Most stores honor these competitive prices as well. A few months back when I was looking for a birthday present I went to Toys R Us to look at Lego sets in person. The setI decided on was about $45 at the store. However, the same set was only $27 online through WalMart. Upon checkout I showed this to the cashier, and I got the gift then and there at a fraction of the price for using my phone for all of 20 seconds.
Whenever you are making a sizable purchase, do yourself a favor and run it through google first. This could save you a ton of money. The only store I know that does not price match to online stores is GNC.
Continue reading 5 Ways For Millennials to Save Money This Month