Your food budget needs to be cut by $2 a day per person.
This may seem like a very basic statement, but I wanted to really emphasize the importance of taking this action.
The Power of Compounding:
$2 a day * 365 days = $730 a year of after-tax money. That’s enough for an international plane ticket every year (or a really nice international trip every 2 years).
If you are a family of 4 and you can cut $8 a day of your family’s food budget: $8 * 365 = $2920 a year of after-tax money. If you have a child and you put this savings away for college: $2190 * 18 = $52,560 in 18 years with no rate of return.
With a rate of return of just 5% (5% net, after including capital gains taxes) it would be $86253.89 after those 18 years… this is after-tax money!
One Person saves saves $2 a day, 18 years with a rate of return of 5% would be $21563.47.
A family of 2 saves $4 a day, 18 years with a rate of return of 5% would be $43126.95.
A family of 3 saves $6 a day, 18 years with a rate of return of 5% would be $64690.42.
A family of 4 saves $8 a day, 18 years with a rate of return of 5% would be $86253.89.
A family of 5 saves $10 a day, 18 years with a rate of return of 5% would be $107817.40.
A family of 6 saves $12 a day, 18 years with a rate of return of 5% would be $129280.80.
A family of 7 saves $14 a day, 18 years with a rate of return of 5% would be $150944.30.
A family of 8 saves $16 a day, 18 years with a rate of return of 5% would be $172507.80.
That kind of money might be able to make or break a a child’s college career (or leave them less debt), it could help an individual or couple travel the world (could you imagine how much traveling you do with an extra $43126.95 over the next 18 years). — Go the the next page —