An Easy Extra $39,000 For Retirement!!!

A few days ago I wrote about the credit card companies who seem to be on a spree to fleece Americans out of even more of their hard earned money. To give myself and some of my readers a little more incentive to pay off the charge card balances, I figured up how much extra money I would have for retirement if I pay off my cards and divert all the money I currently spend on credit card payments to a simple, no interest account.

For the past several months, I have paid an average of $250 per month in credit card payments. Depending on your current credit card debt, this may sound like a great deal, or not much. At any rate, when I finally have my balances paid in full, I plan to divert this money to my investment account. I also plan on working for at least another 13 years. So $250 per month times 12 months comes to $3,000 per year. Multiply $3,000 per year times 13 years and it comes out to a whopping $39,000. Since I'm currently paying this money out every month, I won't miss it if I continue paying it to myself after I pay off my credit cards. The $39,000 total is the amount I would have in 13 years if I simply put the money in a non-interest bearing account. How much will it be in an interest bearing account or if I invest it in stocks? I'm thinking it could add substantially to my retirement.

Now let's add in the money I'm saving by not smoking. (I quit 5 weeks ago) On average I spent $80 per month on cigarettes, was never really a heavy smoker. $80 times 12 months equals $960 per year. $960 times 13 years comes to $12,480. Add the $12, 480 to the $39,000 from above and it comes to an astounding $51,480!!!

Just a little thought and a few minor changes to our lifestyles now, can make a BIG BIG difference when it comes to retirement.