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How Saving $5 A Day Can Change Your Life

How Saving $5 A Day Can Change Your Life

How many times do you spend $5 each day? That morning coffee, a quick sandwich at lunch, a snack at the gas station after work, or a drink out with friends at night can all cost $5 or more. What if you decided to not purchase one of those items each day? What if you made your coffee at home instead of buying it at a fancy coffee shop? What if you packed your own sandwich or decided to get water instead of a coke when you went out at a restaurant? Many people will say they don’t want to give up life’s little luxuries, but here’s what could happen if you did and saved the money instead.

If you saved $5 a day for a month, you would have $150. With that money you could do the following things:

  • You could buy a new smart phone.
  • You could buy a new bike.
  • You could buy a brand new outfit.
  • You could buy a really expensive pair of shoes.
  • You could pay your friend back.
  • You could buy your books for school.
  • You could have a nice day at the spa.
  • You could purchase birthday gifts for 5 friends or family members.

This could change your life significantly if you, for example, rode a bike every day and got in great shape. It could also barely affect your life if you only got to enjoy your new shoes every now and then. So why not save $5 a day for a little longer?

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If you saved $5 a day for six months, you would have $900. With that money you could do the following things:

  • You could finally repair your car.
  • You could pay for a month of rent.
  • You could buy a plane ticket to New York City for two.
  • You could pay for your gas for 3-5 months in cash.
  • You could get ahead on your electric bill.
  • You could finally start that emergency fund.
  • You could pay off your credit card.

Not bad for just giving up a tall café mocha every day for 6 months, right? You can easily see how $5 a day for six months can change your life. Having an emergency fund just in case could prevent you from going into credit card debt. Paying off your last credit card would make you feel so much freer, knowing you were financially stable. Buying a plane ticket somewhere fun could give you memories for a lifetime. Yet, if you saved for a little bit longer, here’s what could happen:

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If you saved $5 a day for a year, you would have $1,825 dollars. That amount of money could get you the following items.

  • You could go on a really nice weekend vacation.
  • You could finally buy your girlfriend that engagement ring.
  • You could put a down payment on a car.
  • You could donate it and make a difference to a charity of your choice.
  • You could pay for a college class.
  • You could fully fund an emergency account.
  • You could finally see the Leaning Tower of Pisa.
  • You could buy a really nice watch.
  • You could pay for 2-3 months of rent in cash.

All of these scenarios so far have involved spending the money you save right away, but what if you grow it instead? Many people say they don’t have enough money to do this, but here’s what could happen if you only save $5 a day for one year.

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You could take the $1,825 and invest it. Even if you add nothing to it, you could reap significant rewards. A very conservative estimate if your investment earns 4% and is compounded once a year shows that you could have $147,000 after 35 years. All you would have to do is give up life’s little luxuries for 1 year, invest that amount, and theoretically let it sit for 35 years.

With $147,000 to spend, you could not only change your life, but the lives of your family. With that you could do the following:

  • Pay for a modest home in cash.
  • Send all three of your kids to college.
  • Go on a luxury trip around the world with your spouse.
  • Start your own business.
  • Invest even more and make even more.
  • Buy an outrageously expensive car.
  • Quit working for 5-7 years.
  • Pay off all of your consumer and student loan debt and that of your children.

As you can see, the best way to change your life with just $5 a day is to save the money for the long term. Sending your kids to college will definitely change their lives. Quitting work for a little while and seeing the world will give you the experience of a lifetime. Paying off debt or buying a house in cash would be a tremendous personal accomplishment. The truth is, no matter what you do or how long you save it for, saving $5 a day for any length of time can make your life better whether it’s in a small or in a really significant way.

Featured photo credit: Making money concept via Shutterstock

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Published on July 4, 2018

Top 10 Recommendations on Money Management Apps

Top 10 Recommendations on Money Management Apps

Don’t want to overspend your budget, swipe your credit card too many times, and feel like a financial mess? Instead of beating yourself up for the bad financial decisions you’ve ever made, create a new plan!

The solution is simple, save more and spend less. But, we all know it’s easier said than done.

One problem is finding quality apps that save you time and money, and aren’t just hype.

Luckily, there’re many great money management apps available at your fingertips. Here are 10 reliable money management apps that can help you save money, and crush debt.

1. Personal Capital

    When was the last time you’ve tracked your net worth? Probably months ago or maybe never. Personal Capital allows you to easily track your net worth and plan for retirement.

    Here are some of its main features:

    • Sync many investment accounts, and expenses (mortgage, credit cards, etc.) in one place
    • Discover hidden fees and how much they’re affecting your retirement plan
    • Wealth management for investors requiring a long-term strategy

    With Personal you’re free to track your expenses and net worth.

    Available for: iOS and Android

    2. Mint

      If your smartphone could only install a few apps, Mint would be one of them. Why? Because Mint tracks all your balances and bills in one place.

      Here are some of its main features:

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      • Effortlessly track all your bills and balances in one dashboard
      • Categorized expenses to understand where you spend your money
      • Uncover hidden fees, and determine your investment style with sophisticated retirement tools.

      Feel at ease with managing your money by a reputable company that isn’t going anywhere.

      Available for: iOS and Android

      3. YNAB

        Everyone needs a budget, there’s no way around it. YNAB (You Need A Budget) is an easy to use app that will change the way you think about money. Their motto is to “give every dollar a job”, and you’ll quickly discover why.

        Here are some of its main features:

        • Easily sync all bank accounts in one place
        • Visually see your debt paying progress with eye-catching charts and notifications
        • Customized categories setting saving goals

        The best part about YNAB is the community that comes along with it. You can hop on the YNAB forum to receive support, listen to the YNAB Podcast or stay tuned for their weekly videos.

        Available for: iOS and Android

        4. Wealthfront

          Albert Einstein once said “compound interest is the eight wonder in the world”, and for a very good reason. The problem is, most people are scared or unwilling to learn the basics of investing. This is why Wealthfront is the perfect solution for the hands-off investors.

          Here are some of its main features:

          • Variety of investment account options including IRA, Roth IRA, and more
          • Your portfolio composed of 7 different asset classes
          • Automatically rebalanced portfolio
          • Daily tax loss harvesting

          Wealthfront is perfect for people requiring investment guidance, or prefer a hands-off solution.

          Available for: iOS and Android

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          5. Clarity Money

            If you’re staying on top of your budget but want to take your finances to the next level, Clarity Money can help you. Clarity Money helps you stay under budget and build a personalized savings plan.

            Here are some of its main features:

            • Easily cancel subscriptions with one click
            • Synchronize bank accounts fast
            • Transfer money effortlessly between different accounts

            Clarity Money isn’t an app that does it all. But, it does make transferring money and canceling subscriptions fast and efficient.

            Available for: iOS and Android

            6. Acorns

              What if there was a way to quickly gain confidence in investing your money, without too much risk? There is, and Acorns is your solution. With Acorns’s technology, you’re able to make investments as small as $5.

              Here are some of its main features:

              • Automatic contribution option
              • Customized portfolio tailored to your needs
              • Low management fees ranging from $1-$2 per month

              Stop wasting dollars on expensive coffee. Instead, invest them towards a brighter financial future.

              Available for: iOS and Android

              7. Albert

                Do you budget by only subtracting your expenses from your income? If so, how would you discover any overpayments or extra money you could save? This is where Albert shines, and it does it all free.

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                Here are some of its main features:

                • Receive notifications for overpayments, hidden fees, and low balances
                • An Automatic budget that’s built around your spending and income
                • Easily track debt and set new financial goals

                While Albert does offer a paid option, most of its core features are FREE. So, what better option to save?

                Available for: iOS

                8. Prism

                  Have you recently forgot to pay a bill because life got in the way? Prism automatically tracks your bills and syncs your bank accounts in one place.

                  Here are some of its main features:

                  • View all your account balances in one glance
                  • Bill due dates are automatically pulled and tracked
                  • Receive early reminders for upcoming bills

                  If your budget is on “fleek” but can’t seem to stay on top of your bills, Prism is your go-to app.

                  Available for: iOS, Android, Windows, Amazon

                  9. Mvelopes

                    Remember hearing about people using envelopes to budget their money? Well, Mvelopes is the new envelope system for this generation. Easily create monthly budgets and track your saving goals.

                    Here are some of its main features:

                    • Connect unlimited bank accounts
                    • Real-time budgeting with auto transaction syncing
                    • Low monthly $4 fee or $40 annual

                    Mvelopes can help you crush debt, save more, and help you stop overspending. With its low monthly fee, it’s worth a try.

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                    Available for: iOS and Android

                    10. Wallaby

                      Most people don’t have time to track their credit card’s changing rewards and interest rates. Because of this, you need help reaping the most of your credit card’s rewards. Wallaby is the app that will help you do just that.

                      Here are some of its main features:

                      • Automatic recommendations for the best credit card to use for each transaction
                      • A friendly user interface, displaying credit cards with their corresponding images
                      • Free to use

                      If you’re using the same credit card to make your purchases, you may be leaving money on the table. Give Wallaby a try if you’re ready to maximize your credit card’s rewards.

                      Available for: iOS and Android

                      Take control of your finances and experience financial freedom

                      Picture yourself staying on budget and saving more money than you’d ever imagined.

                      It took hard work and dedication but you’d finally learned how to manage your money. You have to start taking control of your spending and saving habits.

                      You now have a list of reliable apps that can help you build better money habits, what are you waiting for?

                      Featured photo credit: Pexels via pexels.com

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