Saving money does not necessarily have to involve elaborate savings accounts, CDs, IRAs, or stocks and bonds – especially for those of us who do not have extra cash just lying around. Rather, saving for the future sometimes begins with the fundamentals. The following offers small measures that families can take to cut costs and actually start saving for their future.

Benjamin Franklin once said; “A penny earned is a penny saved.” Well, let’s see.

Small Change

If you are like many who find it difficult to save, forget about the financial advisors, analysts and brokers for now, because saving for retirement starts with the change in your pocket – literally. Grab a jar or canister of some type. At the end of every day, empty all of your pocket change into this container. If you collect even $1 worth of change a day, that adds up to $30 a month or over $350 a year…and that’s just the beginning!

Moreover, there are many other ways to save a buck here and there without having to significantly change your lifestyle. For instance, that Starbucks coffee that costs you $2.50/day could be money in your pocket. That $2.50 becomes $17.50/week or over $900/year. Let’s say, instead of stopping at the local coffee shop, you buy a travel mug ($10) and a pound of coffee for the month ($10). Bottom line: Making your own coffee at home will cost you about $130/year…a savings of ~$770!

Smart Choices

Other ways to jump start your savings might include carpooling to work; not only would you save on gas money but you’ll be helping the environment as well. Additionally, if public transportation is available, you might want to consider this alternative on occasions, which will not only cut down on your transportation costs, but will reduce the mileage and maintenance on your car.

And then there’s that food thing – just budgeting for groceries can eat you alive! Since food is a necessary and recurring expense, just saving, for example, $20 a week on your purchases can convert to over $1,000 in savings over the course of a year. Eating out a lot at work? Bring your lunch to work and save bundles of cash. Research also indicates that you are more likely to eat something healthy when you bring it from home.

For MANY more money savings ideas, see the “Money Management Makes Cents” blog article.

Are We Saving Yet?

So let’s see. Pocket change, a change in coffee habits, and grocery savings (alone) can add up to over $2,000 a year in savings! With this cash in hand, you may NOW want to think about investing these dollars since your savings can be converted into many more thousands of dollars with the right investment. For example, if you invest this same $2,000 every year for 10 years, you’ll have earned $11,725 (with a quarterly yield of 8%) for a total of $33,725. Kick in the same investment dollars for 25 years with the same estimated yield, and your investment dollars would now be worth $165,999!

So you see, over time, the small choices we make can end up making us large amounts of money. And, what’s more, you don’t have to give up coveted items or drastically change your life style. With just a little bit of planning and prudence, saving for retirement will be as easy as making a cup of coffee…literally.

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