Saving Money Tips

Most of us spend over $5.00 a day on coffee or lunch — can this be a way to save more money. Of course, brown bag your lunch and make your own coffee. If you saved $5.00 for 1 year you will earn a total of $1825. Now take your year’s saving of $1825 and put it in a CD. I will use a current CD to show you how you are earning more money. If you took the current CD offered by TD Bank, which is a 60 mo CD at 3.00% (interest rate) at the end of the CD term you will have earned $2,120.33. That’s an interest income of $187.33.

The example above is just from money saved from brown bagging your lunch and making your own coffee. What if you cut expenses elsewhere? Let’s say you save $2500 in year 2009 from cutting expenses and put that in a CD. Your total earnings will be a total of $2,904.57.

The key to saving money is depositing your money where it can earn interest. As your deposits grow, interest on that cash grows. Now, that’s interest income.

How Do I Save More Money

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Other Resources

• When Will Interest Rates Increase?
• What Is A Bond?
• 3 Passive Income Ideas
• My Little Black Book Of Finance