See Small Savings Add Up

  • By DailyWorth Team
  • September 21, 2011

Monthly BillsNo 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.

  •’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?

Tagged in: Saving