It’s Only $20 More

14 03 2011

Have you ever tried to save money but a friend ends up discouraging you from doing so?  Perhaps that person thought you were just way too frugal.  They’ll say things like, “live a little, it’s only $20 buy it, saving isn’t worth it”. 

Comments of this nature can shake your foundation and it is up to you to maintain solidity, otherwise your foundation will crumble.  Keep your head in the game and stick to your plan.  Whether that plan is to be debt free in a year, save for your children’s college or pay off your mortgage. 

I am no stranger to these comments.  In an effort to reduce my cable bill, I decided to decline the premium channel package.  A friend had said to me, “what’s the big deal, it’s only $20 more per month.”  I gave the $20 per month much thought.  Then I proceeded to calculate how much these extra channels would cost me on a yearly basis.  That total was $240!  So, not only would it cost me $20 per month, but $240 per year!  I began to ponder the things I can do with that extra year-end savings of $240.  Here’s the list:

  • Christmas Gift Fund.  Start a gift fund with that $20 each month.
  • Increase Savings.  Add the $20 per month to a savings account and enjoy the compound interest!
  • Pay Down Debt.  Paying down debt will cut down on interest costs.
  • Contribute to Retirement Accounts.  Starting early is key to having retirement savings.  The further you wait the smaller your fortune.
  • Add that $20 to Mortgage Payments.  When you send in extra money in addition to your routine mortgage payment, the ability to shed years off your mortgage is possible.  Be sure to ask your mortgage company if there are pre-payment penalties first.
  • Birthday Gift Fund.  Use the $20 per month to purchase birthday gifts for family and friends. Remember, you don’t have to spend the entire $20.  And if there isn’t a birthday that month you can put the surplus into savings or retirement accounts.
  • Vacation Fund.  How about starting a vacation fund for the year?

When you feel like others are pressing you to move off your path of financial freedom, the emphasis should always be placed on what is right for your budget and your lifestyle.  Stay true to your personal feelings so that you are able to accomplish your goals.




One response

16 03 2011

I can see how $20 now can add up later, especially if you think about compound interest over the years, so much so that I’m surprised some people would call it “just” $20! Nice idea to put it towards others too.

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