How to Save $500 a Month Painlessly

Would you like to save a $500 a month? Just by changing some current spending habits, you can painlessly sock away more than you ever imagined. Did you know that if you faithfully save even just $100 a month and put it in a mutual fund that earns 10%, at the end of 25 years, you would have over $120,000!

Here is a list of things you could do to begin saving that $500 this month. These figures are based on estimated consumption patterns for an average family of four.

1. Cut out one restaurant meal per week; replace it with cooking something everyone loves at home.    Savings: $25 x 4 weeks = $100

2. Cut $15 from your weekly grocery budget by cutting out extras and making wiser spending choices.   Savings: $15 x 4 = $60

3. Cut out one family trip of going out for ice cream or yogurt per week; replace with homemade banana splits or milkshakes at home. Savings: $12 x 4 = $48

4. Cut out 2 stops by Starbucks a week; make your own flavored coffees at home. 
Savings: $3 x 8 = $24

5. Cut out extra trips by carpooling and combining errands to save your family 5 gallons of gas a week (20 gallons a month).   Savings: $2.50 x 20 = $50

6. Cut out shopping at the mall for clothing/accessories; replace with shopping at thrift and consignment stores.   Savings:  $100 a month of mall-shopping - $30 a month thrift-store shopping = $70

7. Cut out magazines purchased off the newsstand; replace with magazines checked out from library or read articles online for free.   Savings:  $3 x 4 = $12

8. Cut out two first-run movies with concessions per month; replace with rented movies and snacks at home.   Savings:  $35 x 2 = $70

9. Cut out convenience store stops for sodas, candy and gum; replace with buying those items in big packages from Wal-mart or the grocery store and carrying them with you so you won’t need to stop.   Savings: $10 per week x 4 = $40

10. Replace purchasing 1 new book a week with borrowing books from the library for free.   Savings: $15 x 4 = $60

Total Savings: $534 a month. Obviously the more frugal you are by nature, the more difficult it will be to find ways to save because you are probably already doing these things. But remember, even just faithfully saving and investing $100 a month pay off big time in the long run.

Copyright Nancy Twigg 2005.