Completing Lap 2 in less than a year « Beating Debt News Archives

Completing Lap 2 in less than a year September 25, 2008

Posted by BDO in Money Spent.
Tags: account, beat, Debt, education, emergency, finances, frugal, fund, money, personal, saving
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By guest blogger kls

Did you know you can complete Lap 2 of the BDO run route in less than a year? Yes, you can save up to $1,000 in an Emergency Account by only saving $2.75 a day. Is that hard? Not really especially when you think of the benefits you will enjoy from having an Emergency Fund. Instead of accumulating more credit card debt the next time something wears out, you can pay cash for those items from your Emergency Account. No credit card interest, no late fees, and no burdening debt.

So, how can we fully fund a $1,000 Emergency Account within a year with only $2.75 a day? The easiest way to save a buck is to shop responsibly.

Here are a few ideas to save your daily $2.75:

Eliminate a fancy coffee or frappachino one or two days a week.
Drink water with your restaurant meals.
Bring your own bottled water or soda from home instead of buying them from a vending machine.
Drive less. With gas nearly $4 per gallon, you don’t have to cut back on much mileage to save $500 within a year. If your car gets 15 miles to the gallon, it costs 27 cents a mile to drive it. Cut out a 10.5 mile trip or unnecessary errand, and you will have your $2.75 savings goal for the day.
You really can eat cheaper at home than eating out. Plus, you don’t have to tip the cook! You can save at least $2.75 per person per meal. Even buying a carryout or grocery store pizza will save you bundles compared to eating at a pizza joint.
Eliminate unnecessary media in your home. Do you need the larger packages offered from the cable or satellite, internet and phone services? Most packages offer more functions than are truly needed. You talk to most people and they will tell you, “I have all these channels and I can’t find anything to watch.” Get rid of what you do not need, and you will save $2.75 per day.

After you figure out different ways to save $2.75 per day, take the savings and put them in your Emergency Account. One idea is getting several one dollar bills and lots of quarters and actually paying yourself for the savings you created each day. At the end of each week, put your $19.25 into a savings account and watch it grow.

Saving money does not have to crimp your lifestyle. Once you make a game of it or get used to looking for ways to save, you will feel blessed, not deprived. You will have adapted to live more with less.