I was chatting with one of my cousins the other week. He always has at least one great story to tell me about his daughter who is almost ten. My cousin and his wife are trying to teach her about saving money and just opened a savings account for her at the bank. He took his daughter along there one Saturday and it just so happened that they took a short cut through a store and she noticed they had the stuffed animals she collects.
My cousin said his daughter stopped and said she’d like one, so he reminded her she had her own money with her. With that, she announced maybe she was getting too old for that ‘kind of stuff’ and off they went to the bank to deposit her money.
Well, the story doesn’t end there. She managed to get her dad back into the store and how strange, she realized she wasn’t too old for stuffed toys after all. But oops, her money was now safely in the bank and that meant that dear dad would have to use his money to buy a toy.
We both laughed about the story, but after I finished talking to him I started to think just how smart she really is. Just like many millionaires she was actually trying to use other people’s money to achieve her goal, while not jeopardizing her own money to get the things she wants. Dad might end up poor, but she’s going to have money in the bank. Seems like she’s already showing signs of being a Budget Smart Girl.
Turn $451 into a million…that headline got my attention. The article said if you’re 30 and save $448 per month for the next 35 years at an 8% annualized return in a retirement account, by the time you finish working, you’ll have a million dollars. Imagine that, you’ll retire a millionaire. The article also offered tips about ways to find an extra $448 per month. Yes, it’s getting harder these days to shave off a dollar here and a dollar there, but one of the tips mentioned cutting down on your entertainment budget. And that got me thinking about the way we spent our weekend…we headed out on our bikes and went biking around on the trails in our neighborhood. We got exercise, fresh air, didn’t use any gas or wear and tear on the cars. It was a fun afternoon and it didn’t cost us a penny. It’s made me think about other things you can do for free right in your own backyard. I’ll let you know what ideas I find.