How would you like to have $100,000 in the bank?
A regular person can easily accumulate this level of savings. You just need a systematic plan to make it happen. I’m completely for real about this.
I’ve figured out a way to make this work for just about anybody. Of course, I doubt my approach is totally unique, but it just might be something you haven’t considered before.
For what amounts to daily pocket change, you can put a big smile on the face of your piggy bank!
Here Is the Nest Egg Savings Approach I’m Suggesting
Previously, I wrote about how Soft Drinks Are Amazingly Bad for Your Health. I think my article made it clear that we all should cut way back on the amount of sodas we drink every day. Well, what if you eliminated buying soft drinks all together?
You can kill two birds with one stone here. You can take a significant step towards improving your health and save a really nice nest egg for your family! Let’s see how this works.
I’d suggest to you that a family of four easily spends $1.00 per person per day on soft drinks. Count it up and see if I’m wrong. What happens if you save this money instead of buying sodas with it?
I used a simple savings calculator to compute the following:
- Save $4.00 per day by NOT buying soft drinks
- $4.00 per day x 30 days = $120 per month
- Set up an automatic investment of $120 per month directed to a decent mutual or index fund
- Do nothing, but wait and earn an average of 8.0% interest
- In 25 short years, you will have $114,130.51 in your account!
How could it be any easier than this?!? If all you did was quit drinking soft drinks, you could painlessly save over $100,000 for your nest egg. That’s powerful and at least a little amazing I think!
The Objections That Might Lead You to Dismiss This
I want to address some potential objections. Do you hear them in your head right now? Usually, when I come face-to-face with a plan like this, I tend to come up with some excuse to dismiss it before I ever really give it a chance.
I’d hate for that to happen for you because I really believe this will work. Therefore, I’m going to bring a few of the objections out into the light of day and smack them about to weaken them for you.
Here are some of the objections or excuses that might pop-up:
- 25 years is too long to wait - I’ll admit that this is a bit of time. However, if you do nothing for the next 25 years, you’ll have nothing in 25 years. The time will pass faster than you think and if you’ll just set-and-forget the automatic investment, then before you know it you’ll have a nice nest egg.
- I don’t drink this much soda – How much do you drink? Keep track of it for a week. You might be surprised. However, if it isn’t soda for you, then maybe it is coffee or clothes or snack food or whatever. The point is that you likely have an area where you can cut back to save $4 per day.
- I can’t earn 8.0% interest – I think over 25 years that it is possible to average this rate of return if you invest wisely in a good mutual or index fund. However, what if you earn only 6.0%? You’ll still have over $80,000 in your nest egg. Isn’t this better than nothing?
- I’m too old to start now – I’ve heard Dave Ramsey quote this proverb, “The best time to plant a tree is twenty years ago. The second best is now.” Who knows how long you have? If you start now, you’ll thank yourself later regardless of your age.
- I don’t know how to invest in a mutual fund – Learn! This is not rocket science. You are plenty smart enough to figure this out. Millions of other regular people have done it. Here is a great introduction to mutual funds that will get you started.
I’m sure these are just a few of the objections that you might hear in your head. Squash them! Are you going to let excuses paralyze you and cost you over $100,000? Decide and act now!
What are your thoughts about this approach? Leave me a comment below and let me know.
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