Turn $451 a Month Into a Million Bucks

Here's something interesting I read awhile back.

If you're 30 years old, you need to set aside $448 per month for next 35 years to become a millionaire -- if you earn a reasonable 8% annualized return in a retirement account. Many people may say they don't have $448 to spare. Think again, maybe you do and don't realize it.

Save on Taxes
Maximise any tax exemption. This is hard here in Singapore but not totally impossible. Nothing against the law either. Example, for married couples who are planning their 2nd child, do it before the wife turns 30 (or whatever the age) and the couple will be granted a certain amount of tax exemption.

Another way, don't spend unnecessarily on goods and save on Goods & Services Tax (7%).


Save $100 Per Month on Food
Here’s How: Bring your own breakfast or lunch to work. Rather than having hawker food for breakfast, one could opt for bread with spread. A loaf of bread cost about $1.60 and can serve 6 (total of 12 slices). Another healthy and good alternative, oats. Beverages can be made in the office than buying from the drink stall.

Save $80 Per Month on Entertainment
Fewer dinner-and-a-movie night every month. That assumes you and your significant other pay the average $33 per person for a restaurant meal and that you spend $10 per ticket, the average price at the movies.

Save on Health Care
Manage our health. Watch our diet, drink more water and exercise. Also, rest more. These helps strengthen the body's immune system.

Plan Your Route (for those who drive)
Avoid unnecessary driving and avoid jams. This will ensure you save on fuel. Petrol prices have past S$2 per litre, which works out to $0.17 per kilometer travelled (assuming each litre gives 12km). Be gentle on your foot and take more to highway, these helps on fuel efficiency.

Maintained Your Car Well
Keep your car’s engine tuned and tires inflated to the proper air pressure. Those minor improvements can save you up to $100 on gas each year.

Go for House Brand

When doing grocery shopping, opt more for house brands than manufacturer's brand. House brands usually cost 10-20% cheaper.

How Much Saved in Total?
If we do those sums, we should be able to save a couple of hundreds a month. Translate the savings to proper investment that earns an average of 8% return per year, over the next 35 years, and you'll have a tidy sum for retirement. That wasn't too hard, right? It just takes some discipline and getting use to.

(source : Kiplinger.com [Turn-451-A-Month-Into-A-Million-Bucks[)