You can boost your bank account by eliminating little expenses – like your daily cappuccino – and putting that money in a retirement fund instead. But could you really go through life with no treats? No way! So, try this savings advice and you could end up with an extra $400-grand when you retire. We got these tips from Money magazine:
- First, drive a less-expensive car. Sure it’s fun to zip around in a shiny status symbol. But is looking cool worth the risk of being broke when you’re 60? Well, a lower sticker price doesn’t mean giving up looks, performance, or comfort. For example, if you want a 4-door sedan. For $30-grand, you could get a 2007 Acura TSX with leather seats and a sunroof. Or for $9-thousand bucks less, you could buy a Honda Accord with velour seats and no sunroof. Invest that money each time you buy a car over your lifetime, and you could retire with an extra $180-grand.
- Send your kid to a public university. A Harvard degree sounds great, but a diploma from a state university won’t limit their prospects. Studies show the real impact comes from getting a college education in general. A college grad - Harvard or not - will earn $300-thousand dollars more over their lifetime than a high school grad. But back to your savings: a state school versus a private university means you could put aside an extra $200 dollars a month into a savings or retirement fund. The amount when you finally retire: $164-grand.
- Finally, plan to cut your vacation spending by a thousand dollars a year. To do that, consider traveling in the off season, or visiting less-expensive destinations like Costa Rica or Mexico. That could cut your vacation costs by about 40%. Again, invest it wisely, and you could have $122-grand more when you retire.