No matter how smart or easy, most savings advice feels ho-hum when you can’t see how the money adds up over time. Now you can.
- Bills.com’s new tool, My Savings Machine, shows you how much you can save by cutting small amounts of ordinary expenses, from cable to beauty products.
If you spend about $50 eating out every week, select the “Eating Out” category and set your target saving amount to $50. Move the interest-rate slider to 1%—about what that 50 bucks would earn in a savings account.
One year later, you’d have $2,601. Five years later? $13,323.
- David Bach’s classic Latte Factor Calculator also shows you how small chunks can add up (cutting that daily $4 latte translates to $1,050 saved each year). Or, watch potential savings add up with the Latte Factor iPhone app.
Yes, you can get the same results by doing a little mental math and plugging numbers into Bankrate’s Savings Calculator.
But these tools make the idea of saving a few bucks go from tedious to enticing.
Add it up. How much could you save in a year by cutting one relatively small expense?