Are you too broke to
save?
If you feel like this you are not alone. Many people do not
feel like they make enough money to begin
a saving and investing plan. How can I save any money when I am
barely surviving off of my current income? 
In order to begin a saving plan you will first need to take a
look at your everyday expenses.
Often what we
deem as necessities really are
luxuries (i.e.
cable, the highest speed internet access, name brand
products) but, even the true necessities can
be priced shopped for and scaled back.
David Bach, the author of “The Automatic
Millionaire,” wrote an article describing 5 ways
to save $2,500 in 20 minutes over the course of a year.
He said that,
Most people overestimate what they can do financially in a year
-- and underestimate what they can achieve financially in just
a decade or two.
For now, aim to find $2,500 to cut out of
your spending this year and invest it in a savings or
retirement plan instead. To see the potential results, do the
math with my Latte Factor calculator.
In 20 years, investing $2,500 a year with an 8 percent interest
rate will amount to almost $125,000. In 30 years, you'll have
accumulated over $300,000, and in 40 years, almost $700,000.
Earn a higher interest rate -- say 10 percent -- and in 40
years you would have well over a million dollars.
Are you ready to transform your finances this year? Here are
five ways to save over $2,500 in just 20 minutes:
1. Lose the premium cable
television package and save $960.
The average premium package -- over 200 channels -- can easily
cost $100 a month when you include the cable box fees and all
the crazy taxes and unexplainable expenses that are legally
tacked onto the fixed cost.
That's $1,200 a
year just to watch TV! And, of those 200 channels, you probably
only watch maybe a dozen.
Do you really need all the extra
channels?
And do you
really need a cable box for every TV set in the house? If you
downgrade to a more basic cable package (many of which start at
$19.99 a month) and return a cable box or two you'll save about
$80 per month, or a whopping $960 for the year.
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