If you can figure out how to save just $125 per month, then set up an automatic savings to a mutual fund that yields an average of 7 percent, in five years you will have almost $9,000.
In 20 years, that amount will have grown to $65,000! Here are four suggestions for coming up with that $125 per month:
• Look at your cable TV bill. Do you need all those channels? You can roll your bill back by getting rid of premium channels or subscribing to a smaller, cheaper package.
• Stop picking up magazines from the supermarket or newsstand. Save yourself some money by reading online or subscribing to your favorite magazine instead. And if you’re subscribing to anything you don’t read, cancel it.
• Change your cell service. Shopping around can get you a better deal that will save you bucks. Just make sure you won’t be penalized for breaking a contract early.
• Call your credit card company. You may be able to get a lower interest rate just by asking.