People always ask me how to start saving money. Some financial coaches say to cut your daily coffee and save that money.
But what is that going to do for you?
Sure, if your coffee costs $3 a day, you’ll have an extra $1,000 at the end of 1 year. Investing it at 6%, you’ll continue to add $3 a day plus interest every year and have approximately $15,000 after year 10, $46,000 after year 20 and over $91,000 after year 30.
But you might be cranky for 30 years without your coffee!!!
How I started to save money
Now I never drank coffee, so I should have at least $50,000 extra, right?
The money went somewhere else? But where?
Well in my earlier years I admittedly wasn’t as good about counting every penny like I am now. So although it didn’t go to coffee, it went into what I call “the money black hole”.
My money used to control me, but now I control it, I tell it where to go, every little bit of it. I’m now able to form good habits about putting aside that extra money. If you do that in a few different areas it really adds up!
So don’t let your money control you or end up in the money black hole, You always need to tell it where to go.
You don’t have to cut out your coffee. You can of course, but we all have payments that stop. Maybe we were paying a credit card and it’s now paid off, or a gym membership we weren’t using that we canceled, or an athletic fee for our children that is now paid in full, you get the idea. Take that payment you were making and start saving it instead of letting it go into the money black hole!