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Cost cutting
suggestions and estimated savings over 30 years
Some ways to reduce expenses:
| Cost cutting measure |
Estimated
daily savings |
Savings accumulated
@7.5% compounded return
over 30 years. |
| Quit smoking. |
$5.00 |
$188,704 |
| Pack a lunch instead of buying. |
$2.00 |
$75,482 |
| Cut down on eating out, and frequent trips to the
coffee shop. |
$3.00 |
$113,222 |
| Cut down on liquor purchases. |
$1.00 |
$37,741 |
| Do you really need call waiting, voice mail,
etc.? How much could you save by reducing some of
the telephone features you use? |
$0.50 |
$18,870 |
| Do you spend a lot on long distance calls?
Check to see if you are on the best plan. If
most of your calls are to one area code, investigate
getting a second phone line for that area code, using
a VOIP (voice over internet), or internet broadband
line. |
$0.75 |
$23,806 |
| Do you really need high speed internet? Cable
companies have lower speeds at lower costs. |
$0.40 |
$15,096 |
| Cell phone - do you really need it, or one
each? Do you need that monthly plan, or could
you use prepaid phone cards? |
$1.00 |
$37,741 |
| Could you reduce or eliminate your cablevision bill? |
$1.00 |
$37,741 |
| Turn down the heat. Turn off the lights and
TV when you are not using them. This saves money
and helps the environment. |
$1.00 |
$37,741 |
| Make more meals from scratch instead of using
expensive pre-packaged foods. |
$0.50 |
$18,870 |
| Fix it yourself. Do-it-yourself books are available
at the library, and it isn't really as hard as you
think. |
$0.50 |
$18,870 |
| Don't buy on impulse, even groceries. Make a
list of what you need. |
$0.10 |
$3,774 |
| If you think you need something, put it on your
list. Then think about it. Do you really
need it, or will you just be adding to the
"stuff" you own? |
$0.50 |
$18,870 |
| Cut fuel costs by cutting the number of trips you
make for shopping or other purposes. Build up
your list and don't make the trip until you really
need to. |
$0.25 |
$9,435 |
| Do you really need all those movies, and music
CDs? You can listen to the radio and watch TV. |
$0.15 |
$5,661 |
| Total of all above estimated cost savings -
before tax |
$17.65 |
$666,125 |
The accumulated savings amounts are calculated assuming
that the annual savings are deposited at the end of each
year, and rates of return are compounded annually.
Tip: You would be amazed at how fast small savings can add
up.
Revised: December 18, 2010
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