How I Found An Extra $20,000+ For Retirement

At the beginning of this month, like I do every year, I sat down to go over my spending to see if I could make any cuts and save additional money for investing. This year, however, I wasn't really expecting to find much, since I had myself convinced that I was running a pretty lean operation. I was shocked to find how wrong I was!

When I started reviewing where my money was going, I found 4 items that totaled over $150 per month that could easily be cut from my spending without changing my basic style of living. As I've mentioned in some of my previous writing, I go out to eat every day, at least one meal a day. With these meals, I usually have a soda. In the area where I live, the restaurants typically charge $1.50 per soft drink, multiply this by 30 days and it totals $45.00. I decided that I really didn't need to drink so much soda and have begun ordering ice water with lemon instead, saving an easy $45. Next I reviewed my insurance policies. By cutting out extra coverage, which I really didn't need as a single person with no children, I was able to save myself an additional $75 per month, bringing my total to $120. Then I looked at my regular household expenses. Since I eat out so much and have mostly microwave meals at home, I was able to save an additional $20 per month by having my natural gas service disconnected (only my kitchen stove was gas, everything else is electric). While reviewing my insurance, I also discovered that I had emergency road service included with my auto insurance, which allowed me to cancel my regular roadside service, saving myself approximately $10 per month, for a grand total of $150 per month. If you multiply the $150 per month x 12 months, it gives me $1,800 per year or $18,000 over the next 10 years. Figure in the compounded returns from investing this money over the next 10 years and I will easily have over $20,000 more for my retirement.

Since I've been spending this money every month, I don't have to work any harder to keep paying it out. Only now, it will be paid to my investment account and will start earning additional money for me. Finding $20,000, what a great way to start the new year!