Use Money Hacker’s savings growth calculator to visualize how earning interest makes your money grow over time.
One of the main objections people have to building an investment portfolio is that it takes every penny they have to get by. Most of us waste more money than we realize especially when it comes to eating out and entertainment expenses. Try this strategy for a month and see how much money you can save in a thirty-day period.
If you tend to each out three or four times each week, add up the amount you spend on those meals last month. This can usually be done by looking back at your credit card statement. Calculate an average cost that you pay for each meal out.
Next, limit eating out to one night per week. Choose a place that you enjoy, but one that also happens to offer meals at moderate prices. For all those other nights, prepare your meals at home using whatever is in the pantry. This may mean getting a little creative, but since that food is already paid for, why not put it to good use?
Each night that you eat in, put the equivalent of an average meal out into a glass jar. Include what you would’ve left as a tip! At the end of the month, empty the jar and total the contents. Place the money in an interest bearing savings account and you’ll quickly accumulate the funds needed to participate in a bond issue, buy a few shares of stock, or secure a low risk investment that will serve as part of the foundation for your financial portfolio.