Wednesday, January 16, 2008

Turn your pocket change into wealth

We all have it. Loose change. All those pennies, nickels, dimes and quarters - even the occasional $.50 and $1 coins - weighing our pant's pockets down. Never mind that all that loose change might make you look like a plumber, but it is not doing you any good just sitting there in your pocket. Put it to work for you!!

The other day I posted about not spending your dollar bills. If that is too much to start with, narrow it down to one $1 bill, or just take your loose change, and put it into a jar. Try to do this everyday. Some days you may have more, some days you might have less, but you should be able to average $30 a month. At the end of each month, pop it into an investment account (IRA, Roth IRA, mutual fund, MMA...something!). There are a good selection of excellent funds out there, that average 10% returns...find them, and use them.

So, what will $30 at 10% get you? Quite a bit. If you are faithful with putting that $30 a month into your account, and you average the 10% return, you'll have just shy of $70k in 30 years, with a total amount actually contributed by you of about $17K. Pretty neat, having that $17k work for you, and make you around $50k. This is the whole idea behind my belief that SAVING MONEY is MAKING MONEY. The little areas in life that we can cut back on, and save a little bit here, and a little bit there, can then be used to make you more money, helping to secure your financial future.

It doesn't stop you find more ways to save, you can invest more into your accounts. You can invest $60 a month, and make over $130k in the same 30 year period. What about $100 a month? Over $200k in 30 years. Geez, that cable bill with all those premium channels is really looking to be more expensive than you thought, isn't it?

Do the thing today, that others don't, and you can have and do the things tomorrow, that other's won't.

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