arry Magill, Sales Representative
Century 21, B.J. Roth Realty, Brokerage
The Habit of Saving
|THE HABIT OF SAVING
Many years ago, I read a book by Napoleon Hill, written in the 1920's called The Laws of Success. In this book is a chapter called 'The Habit of Saving'. The dollars in this book reflect the times. After reading this chapter, I thought of how I can save some money beginning with all my coin. We all have ingenious ways of spending money . They never stop to amaze me, BUT I have some ingenious ways of Saving Money.........and they work!! Don't think "I can't"................Believe that "You can!"
MY METHOD OF SAVING
Back in 1989, I started to save my coin in a Plastic Coin Pail from Caesar's Palace in Las Vegas and still do 'til this very day. When I am out, I always, always buy my coffee, groceries, gas etc, with anything from a $5 - $20 bill. I never, ever pay with my coin. Each day, I put all my coin in this Plastic Pail. It is automatic and very rewarding. After so many years, by lifting the pail, I know when it's time to roll the loonies, toonies, quarters and maybe the dimes, nickels and pennies. Usually every two weeks. An average month is $150.00 and I never miss the money. When you try this.....Will it be easy? No !!! Will it work? Yes !!! Will it put a smile on your face? Absolutely Yes !!! This has become a habit I cannot break, because it makes me feel so good and it has no negatives...........it's all plusses.
THE MATH OF SAVING
Let's look at some math. You buy 1 medium coffee @ $1.40 x 6 days/wk (you have got to have one day off) You give the cashier a $5.00 bill and get back $3.60, which you keep in your own jar/pail. So we multiply that $3.60 x 6 = $21.60 then by 52 weeks which equals $1,123.20 This is money you never missed. Merry Christmas.............that's quite a gift yourself!
I have gone one step further. I try to put a $5.00 bill in my pail each day, if I have one in my pocket at the end of the work day. Even when I am out of town ie: at a seminar or conference, I put my coin in an envelope and empty the envelope into my pail when I get home. So let's say I save $20.00 a week in $5.00 bills, add that to my $21.60 of coin = $41.60 Now $41.60 x 52 wks = $2,163.20. Unbelievable, but it is a FACT, and because I often buy 2 cups of coffee, it will be more.
These economic times make saving tough, so you put away each week, 3 coffees or $10.80 x 52= $561.60 and if you put away ONE $5.00 bill a week, that is $260.00 plus the $561.60, it totals $821.60 Again..........unbelievable but true, and very easy to do. ONCE YOU START THE HABIT, you won't want to break it. This is money you NEVER thought about, and never missed.
Some of you will say "Harry, I just cannot put that much away." I say to you,"Do what you can then." 1-2 dollars a day adds up, and before you know it,you've saved $500 - $600 at the end of the year, and the best thing about it is,you never, ever missed it. Use it to save for that Trip, Christmas presents, or that credit card balance. DO THIS FOR YOU.............IT WORKS. It really does.
USING THE BANK TO SAVE MORE
Two years ago, my bank offered me a great way to save money. When I use my debit card, their new Saving Plan SSV, with my written consent, will transfer a minimum of fifty cents to $5.00 I chose the $5.00 (no kidding) from my chequing into my savings account, where incidentally, I deposit all my wrapped coin into. Then when I had transferred $100.00 or 20 transactions, they would give a bonus of $10.00....that is 10% (no strings attached) up to a maximum in the one year of $200.00 I ended up collecting approximately $140 - $150 of the Bank's money, and there was no T5.........Nothing!
I make hay with my Debit Card each day. The 10% Bank's Savings Program was back in 2009. If they bring it back, I will be first in line.
Our saving interest rates are very low, but with this saved money, you can pay a bill or bills, and save yourself what interest you would be charged on a credit card bill, if you did not have the money to pay the full bill. You get to enjoy these rewards and these rewards continue each and everyday.
MAKE YOUR CREDIT CARD WORK FOR YOU
This is how I make mine work for me:
My re-cap date for each statement is the 15th of the month, and I get 1% back for each dollar spent. Many lenders offer different incentives ie: Air Miles, 1% back and many more. If I have a big purchase and I can delay it beyond ie: Oct. 15th, then it appears on Nov's statement and the amount on that statement is due the first week of Dec., with No interest. If I had put the purchase through before Oct. 15, then that statement is due the first week of Nov. If you can take advantage of this free interest period of approximately 45 days.....Do It!
If you are carrying a balance from month to month on your credit card, look around.
The interest rate on credit cards can be as low as 7% and as high as 30% Take advantage of the low rate cards for yourself and work to save your money, using "your saved coin" to pay off..........the balance of your credit card.
THE RULE OF 72:
Now finally, you have all heard of "The Rule of 72".................not likely.
It was discovered in Venice in 1494. Is it beneficial for you to know about it..........absolutely! It is the equation that determines how quickly your money will double. It applies to any number between 1 & 9 that will divide equally into 72. They are 1,2,3,4,6,8 & 9. Here is how it works. You have a G.I.C. of $10,000 at 6% If you divide 6 into 72, it equals 12, meaning that it will take 12 years for that $10,000 G.I.C. to double. Another example is, if you have a G.I.C. at 8% divided into 72, equals 9. So, at 8%, your money will take 9 years to double.
MY CHALLENGE FOR YOU
For those of you who want to follow along.......I CHALLENGE YOU, to join with me in saving ALL your coin each day, and if you can, trying to put away another $5 per day. As of Nov. 1, my Plastic Pail will be empty, my Savings Account will be down to $1 and I will inform you as to how I'm doing after 3 months, 6 months, 9 months and 1 year. So............Challenge yourself and do your own math and see what you can do for you. I would LOVE to know how you do. This will make you smile and a smile doesn't cost you a thing.........it just makes you feel good.
Remember, when you use your Debit Card, you are using Your money. When you use your Credit Card, you are using Their money, with the hope you can pay the full balance when the statement comes due. If not, you are paying 2000-3000 times more. Hard to believe......Do the math and save Your Money. It is Yours--------NO ONE ELSES !!!
Every journey begins with that FIRST STEP......take THIS FIRST STEP for you ! NOT TOMORROW.......TODAY !!!
Watch for more articles coming up.
I take great pleasure in writing these articles for your enjoyment and reading pleasure. I hope you find them most helpful. If there is some household issue you would enjoy seeing me write about, please drop me an email at firstname.lastname@example.org and who knows, you may find the answer to your problem in my next issue. It is my intent to help keep you well informed, therefore keep your home a happy one. Like they say......"Being forewarned is forearmed".
Century 21 BJ Roth Realty Ltd