I always knew that making small changes to one's lifestyle could have beneficial downstream impacts, but a recent Hamilton Spectator article (based on TD Waterhouse research) offers some interesting (and specific) details:
- Brown bag it: By taking your own lunch to work three days a week, you'll save an average of $7 a day. After groceries, that's a net saving of $15 a week, $60 a month and $720 a year. Slip that into an RRSP earning 7.2 per cent a year, along with the tax credit from an RSP investment and over 35 years those lunches turn into $94,658 at retirement.
- Take the better way: Parking the car and taking the bus to work saves $834 a year - with tax credits and interest over 35 years, that totals $109,689.
- Bulk up: Instead of buying bottled water at $1 a pop at a convenience store, buy it in bulk for $3 a dozen and save $574 a year, including the RSP tax credit. Over 35 years your nest egg just grew by another $56,777.