Saturday, January 28, 2006

Simple Life Changes Can Have a Huge Savings Effect

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.
The total of these small changes delivers $261,124 at retirement.

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Disclaimer: These articles are for information only, and are not to be construed as financial advice, legal advice, or a solicitation to buy or sell securities.