The real impact of saving $5 a day on clarkhoward.com

Saving just $5 a day everyday can have an enormous impact on your financial future, syndicated Los Angeles Times columnist Kathy Kristof writes in a recent article. When it comes to this topic, everybody loves picking on Starbucks! But people also blow a Lincoln a day on buying breakfast or lunch on the go. For those who do come up with the extra $5 everyday, here's how it can grow with interest over the years: After 10 years, you'll have $29K; after 20 years, it will be $105K; and after 40 years, a whopping $800K!

Some of us are so careful with our money that we couldn't come up with an extra $5 a day. However, most of us could. Clark challenges listeners to write down everything they spend money on while walking around during the next 2 weeks. This will help you see where you can trim your budget.

In addition to frivolous purchases, our inability to delay gratification conspires against our future financial security. Money magazine reports that when people were offered $20 today vs. more money about 6 months in the future, the people overwhelmingly took the $20. In fact, people had to be offered money with an average interest rate growth of 4,800% to get them to delay gratification! The only way to overcome our innate bias towards immediate gratification is to set up automatic withdrawals before the money gets to you -- like with a 401(k), for example.

What others are saying

unwanted loan offers
I have recently checked my messages on my answering machine and I have several automated messages offering car loans and mortgages.This is very annoying,how can I stop these leeches?
By John Henry @ 08/09/08 03:30:25 PMreport abuse
lost my job to a plant closing
My plant shut down at the end of May. My wife and I have three 401k that are doing nothing. What should we do, invest in a IRA for now or what?

thanks
By Doug @ 07/30/08 03:07:48 PMreport abuse
saving accts. for children
My son is 8 years old and has about $3000 in a savings aact. with Bank of America. The intrest rate is pitiful!
Have you got any suggestions were he can put the money for a resonable return?
Many Thanks
By Robin Toone @ 06/20/08 03:14:05 PMreport abuse
CAR INSURANCE APPRAISAL
Hi Clark, Please let the listeners know also that additional to the Kelly blue book appraisal value of a car;any improvements made to the car like off the market Rims,maintenance, radio, etc. increases the value to the car as long as they have their receipts and should be included to the final appraisal price.
By Richard Minto @ 06/16/08 03:35:23 PMreport abuse
$20 today vs $400 in 6 months
I would take the $20, figuring that I would get $0 if I waited the 6 months.
If I believed it I'd take as little as $22 in six months rather than twenty now :-)
By Chris @ 04/16/08 05:48:41 PMreport abuse
$5 a day
Hey guys This plan really works. I did this for 4 years, while I was in college. I was let go from my job and I was able to live off those savings for a few months until I found a job. It is so worth the $5 a day. Please do it for yourself and your children
By Tatjyana Allen @ 04/15/08 01:46:23 PMreport abuse
$5 a day
My husband and I have been saving our change. You would be surprise how much change adds up. $5 a day is a very good idea. I will start this tomorrow. Back to the change, one time we saved close to $1000. We use to make a game of it. Who could save the most in separate piggy banks. Now we are using one bank at a time. I got tired of wrapping pennies with the rest of the money that I separated the pennies from the rest of the change. Every little bit helps.
By Karen @ 04/13/08 04:57:31 PMreport abuse
Pay Off and Pay Ahead
I've learned over the years that when you make your last payment on your car don't start spending the money somewhere else. Instead, continue writing that check and put it into a savings or money market account. When you need to buy a new car, you'll have your trade-in plus all the money you've been saving to put toward the cost of the new vehicle. I've been able to pay cash for my last two vehicles by using this savings technique.
By Johnnie @ 04/13/08 02:58:25 PMreport abuse
$5 a day
I travel a lot, so I eat as many as 3 meals a day in restaurants. Some are charging nearly $3 for soft drinks now, so I grab a free coffee in the hotel lobby and drink water with my meals. While not everyone eats in restaurants so often, most people can save a few dollars by taking a reusable water bottle and refilling it at the water cooler instead of stopping at the convenience store for a soft drink.
By Tina @ 04/13/08 11:49:35 AMreport abuse
$5.00 saving a day
I started saving dollar bills about 7 months ago. i now have 3779.00 youll be amazed how fast they add up!!!
By Annie @ 04/12/08 10:37:35 PMreport abuse
$5 a day
My husband & I live in a rural NY town, our combined income is around $79K a year with no car payments minimum cable, internet, & cell phone plans. I buy all our clothing on clearance sale, & also at the local thrift stores. Our grocery bills for a family of 5 are about $200/week. We have medical insurance with a $500 a year deductable & 20% co-pay. The credit card comanies we were so naive to begin business with are sucking us dry with finance charges & high intrest rates & we cant do it. Sadly it will be difficult for many americans to come up with $5 a day with the rising fuel costs we are a fraid of how we will survuve next winter.
We need the state & federal goverments to drop their taxes on fuel & develop REAL credit reform laws to stop the middle class bleeding!!!
By wamwarren @ 04/12/08 01:40:24 PMreport abuse
re: the nominal value of money by joe
Uhhhh....doesn't a recession mean that things become cheaper as the value of the dollar goes down and pulls everything down with it? Don't try to twist things, dude.
By Heidi @ 04/12/08 01:19:09 PMreport abuse
$5 a day
i started with 2 dollars a day for 6 months no im up to 4 a day a little goes a long way
By scott manes @ 04/10/08 12:19:05 PMreport abuse
Public Transportation
I ride the bus and save 10.00 per day on gas and parking fees.
By Tim @ 04/10/08 11:01:15 AMreport abuse
Savings
If $5 is too much, what I do is never break a $1 bill. I just put them aside when I get change. It is amazing how quickly it grows as well.
By Kathy @ 04/10/08 09:05:46 AMreport abuse
the nominal value of money
What Clark fails to mention is that inflation is approaching 20% according to John Williams at Shadowstats.com or also at nowandfutures.com so in 40 years, your 800K might buy you a bicycle. Look at Zimbabwe with 300,000% inflation. A loaf of bread costs like 130 dollars.
By Joe @ 04/10/08 03:44:18 AMreport abuse
saving $5 a day
It's amazing how so little can become so much!I tell my husband almost everyday, he'd save so much by just taking his lunch which he spends $8-10 daily. Thanks, Clark
By Alicia @ 04/09/08 06:11:19 PMreport abuse
Gas
I have always planned my trips/errands for the most of gas economy...and, I do watch my speed. TDhank you for all the reminders and info.
By Peggy Simonovich @ 04/09/08 01:08:30 PMreport abuse
$5 a day you say!!!
I'll encourage my 16 year old son to start this savings plan when Kroger calls him up for his 1st job, which I hope is very soon. Thanks for the info Clark!!!!
By helen @ 04/09/08 11:06:01 AMreport abuse
saving $5 a day
The other listeners' comments were very helpful, especially Bactrac about 401K's and pre-tax dollars.
By Nora @ 04/09/08 10:51:05 AMreport abuse
thanks
I have a real problem with saving, thanks for the $5 a day. I will work on this one.
By jo jackson @ 04/08/08 10:06:45 PMreport abuse
Saving $5 a Day!
I've been putting an extra $100 a pay period(every two weeks) into an on-line internet savings account that Clark informed me of for about 2 years now. It's amazing to see that that money grow! My mom always told me: "Pay yourself first, before you pay anyone else!"
By Clint @ 04/08/08 09:38:35 PMreport abuse
Interesting $5.00 a day does not sound like much until you multiple x 30 and then by 12. Clark, thanks for all the information you provide to the public. it sure has helped me.
By Kathy @ 04/08/08 08:39:19 PMreport abuse
Where is this possible
This info is always talked about and written about however nobody ever tells you where to go to set up these accts or to get these rates. Tell us
By Sherry Barbee @ 04/08/08 01:12:57 PMreport abuse
how
You alway print this stuff but you never tell how and where to put this money to do this with.
By Sherry Barbee @ 04/08/08 01:09:36 PMreport abuse
I might add.....
Make sure we as parents do not give money too freely to our children...I require mine to pay for their own college etc... If they live a responsible life, then I can give them money as a gift later... and add it to their saving that they have saved. They get a higher return on their self confidence when doing it on their own...Yes I have preached on going about being a prisner to finances if they are not controlled early in life. Debt can affect all area of their life, marriage..friends.. Why gamble with life like that...
By Ann @ 04/08/08 12:58:55 PMreport abuse
Recycling is good for the CRV and the land fills
I recycle plastic bottles. The redemption value is five cents for the small bottles and ten cents for the large bottles. The aluminum cans can be recylcled as well and every nickle and dime adds up.
By Anne @ 04/08/08 11:32:25 AMreport abuse
Saving money
I've been telling my kids this for years. They still won't do it. Taking money from yourself automatically is the only way to go. The part people don't understand is that they still have the money, it's not gone.
By Cliff @ 04/08/08 10:46:24 AMreport abuse
passing on
I have never been great at posteponing my spending or not being totally committed for every penny. I would like to change that for my 22 yr. old daughter. This suggestion will help her. Thank you.
By Mary @ 04/08/08 09:43:08 AMreport abuse
missing the point
I hear the unattainable 8.7 to 9.2% returns all the CPA's are whining about. Clark is trying to get you to focus on the pay yourself first then pay the bills. If you want the nitty gritty save this 5 a day through your 401K or other work plan and between pre-tax and tax sheltering by reducing your income the % returns could well exceed 10% assuming you have this option. Most people have this type of savings avenue and like me have a long way to go before reaching the maximum contribution limits. KUDOS to Clark for the insight - otherwise your $5 investment in drinks is lost when it is consumed except for the return which with a fountain drink/mochacheeno is usually unwanted weight gain from too much sugar!
By bactrac @ 04/08/08 08:46:02 AMreport abuse
Saving $$$$$
I grew up in a large family; I learned how to save money and how to be frugal.
I have $20 a week held out of my paycheck and it goes into savings. If I
don't touch it, I can save $1,000 a year. It's a great way to save money and I don't even miss it. I just watch
it grow. :o)
By Glo. in Oregon @ 04/07/08 11:10:28 PMreport abuse
The "Budget"
When my wife and I were first married in 1979 we had a combined debt of about $6000. She didn't think that we would ever get it paid off, but she didn't know about the "Budget". I pulled out a sheet of graph paper and told her that it represented the next twelve months and that there would be a diagonal line from 6000 to zero.
I knew that she had no idea how she spent her money, so I asked her to just tell me when she bought something and give me the receipt. With my Apple II computer and the old Visacalc spreadsheet I created the "Budget". After a few months I was able to show her our spending patterns and how we were reducing that debt. She was amazed!
Over the last 29 years the "Budget" has become quite a bit more sophisticated, now I can tell if she's found a penny on the sidewalk (thats called variance). This probably wouldn't work for everyone but it works for us. The "Budget" now is really our spending plan. It enables us to plan for a lot of nice vacations! I really enjoy your program Clark and I learn something every time I listen.
By Ken Callen @ 04/07/08 10:38:15 PMreport abuse
Bike Commuting
with rising gas prices, making small trips on a bike can really add up!
By Daniel @ 04/07/08 06:18:51 PMreport abuse
Bike Commuting
I bike cummute to work everyday. its about a 28 mile round trip, which in my car works out to about 5 bucks a day. An extra $25 bucks a week in my pocket really adds up! I know this is extreme for many people, but little trips add up too.
By Daniel @ 04/07/08 06:11:54 PMreport abuse
Split and save
My wife and I have gotten into the habit of buying just one meal and splitting it when we dine out. We might also buy a dinner salad to split as well. This way we consume less and save money. We sometimes splurge by using the saved money to buy drinks (at happy hour to get a better deal, of course), otherwise we just order water.
By Bill @ 04/07/08 06:05:02 PMreport abuse
Saving...yes!
We need you to run for Mayor City of Atlanta...PLEASE...save our city!
By Atlanta Pearl Girl @ 04/07/08 05:43:32 PMreport abuse
Public Transportation
I live in NYC, which has a great public transportation system. I can get within just a few blocks of just about anywhere in the city, all for just a $2 subway ride. An unlimited pass costs just $81 (which computes to 40+ rides, or 20 round trips.). I easily use these trips for just commuting. But I also use this pass all weekend long, as well as other trips after work. Many friends of mine insists on getting a cab, but again, those $5-10 cab rides add up pretty quickly! Taking full advantage of the unlimited card (I take at least 50-60 rides a month) can really save you extra dough.
By cw @ 04/07/08 04:57:34 PMreport abuse
Four or 5 lemons?
Surely you're joking when you say you order 4 or 5 lemons. At 60 to 80 cents per fruit you're costing the restaurant at least a couple of bucks. This has to be a joke.
By Susan @ 04/07/08 04:48:39 PMreport abuse
clark where can I get this 9.2% interest rate?
Saving $5 per day is great and does add up to a lot of money especially when one uses a 9.2% APR which is what is required to hit the total savings amounts listed above.

A more realistic 4% APR still yields excellent savings:
$22K after 10 years
$59K after 20 years
$180K after 40 years.
By walter @ 04/07/08 04:47:34 PMreport abuse
Rip off the small guys?
John H said," When eating out, I always ask the server for about 4-5 lemons and order water to drink. I then use the free water and free lemons to make lemonade. I also give my two teenagres a choice as to what they can drink when eating out: 1) order a soft drink and pay for it themselves or 2) get water. The price restaurants charge for soft drinks are way too high." The restaurants have to make up their "lemon" money somewhere. Lemons ain't free, dude! Neither are overhead and taxes
By Kay Butler @ 04/07/08 04:43:05 PMreport abuse
$5 A Day
To have $29K after 10 years or $105K after 20 years from saving $5 per day, you need a return of approximately 9% AFTER TAX
By dan h @ 04/07/08 04:28:13 PMreport abuse
Get in the habit of saving NOW
Once you are in the habit of saving, it becomes easy and you won't miss the money. I became a much better saver after taking over my parents finances about 6 years ago. They pull a ton of money from our family business, but at their retired ages, they had no savings, no retirement accounts and no health insurance. I have been able to slowly hide some savings for them, set up an IRA for my mom and an HSA health savings account too. If this would have been started a long time ago, the amount needed every month to get them in a more reasonable place would have been much less. If you don't save for your future or even for small household emergencies, you will end up in trouble later on in life. You can't rely on anyone else but yourself, so pay yourself first.
By Miss Beck @ 04/07/08 04:27:09 PMreport abuse
$5 saved per day
I compute the returns implied in the 29K after 10 years and 105K after 20 years to be 8.7% to 9.2% AFTER TAX.
By danbhill@mindspring.com @ 04/07/08 04:24:19 PMreport abuse
Saving Money
I love saving money, yet I don't feel deprieved. I always find ways to save. Especially when eating out, never order beverages, (usually bring my own bottled water and rarely order desssert. I make very good chocolate chip cookies and those are always available). Also if I can, I purchase a lunch version to go, and reheat it for dinner. The portions are almost the same size, but the prices are significantly cheaper. I have a 17 year old TV, a 5 year old car, furniture that is still stylish and at least 15 years old. What really keeps me savings is that thought that anybody can be homeless! Scarry.
By Wendy @ 04/07/08 04:20:20 PMreport abuse
$5 per day
We started saving $5/day several years ago in a stock DRIP. Now we have 5 different stock DRIPs valued at $22,000. Also, I continue to drive a 24 year old car. I used the car payments to buy property on Lake Lanier.
By Penny Pincher @ 04/07/08 04:06:01 PMreport abuse
Making Lemonade
I think it's wrong to order water and lots of lemons because the lemons and the sugar (and the water) all cost the proprietor. However, it's also wrong to charge extra if someone wants just one or two slices to cut the taste of clorine in the water!
By Barbara @ 04/07/08 03:42:20 PMreport abuse
Saving $5 a day
It sounds easy; but what do we do with the money? Where do we keep it? how can we end up with $29K after 10 years?
By Juan Carlos @ 04/07/08 03:33:51 PMreport abuse
$5 saved per day
the $5 per day savings yielding $29K after 10 years works out to 8.7% AFTER TAX interest; the yield of $105K after 20 years works out to 9.2% AFTER TAX interest - Please let me know where I can get these returns
By dan hill @ 04/07/08 03:33:45 PMreport abuse
Loose change
I never spend change, always breaking a bill to pay for anything. One year, I bought a great digital cameral, the next year a lovely pair of 80tw diamond earrings, the 3rd year a wonderful service for 8 Villroy & Boch china. I now have enough for another nice purchase - which will be a new laptop...............feels like gifts!
By Erma @ 04/07/08 03:09:02 PMreport abuse
I save with ING too!
I started my $5/day savings in October, just like Reagan! At first I had to do it day by day, then week by week, now I can do it month by month. Also, even when I take money from that account, I always put it back when I get it. One challenge is to save $5/day, then when that becomes relatively easy, add another $5/day, and keep doing it! It forces you to 1) save, and 2) find other ways to make money so that you stick to your plan!
By cooliojones @ 04/07/08 03:08:31 PMreport abuse
Making Lemonade
I own a restaurant, and I happily give water for free, but when people want sugar and lemon,I charge for lemonade. We have to pay for those lemons and water cups and straws, so please, water only.
By Jan @ 04/01/08 10:23:33 PMreport abuse
Save $5-$10 each time dining out!
My wife and I try not to eat out much. When we do go out, we choose the restaurant by who has coupons. We get coupons in the mail and eat wherever has a "buy one Entree, get one Free" offer. The coupons are not that hard to come by, and they usually come in sets in the advertisements. The ones we don't use, we offer to people sitting near us in the restaurant. I am always surprised to see everyone paying full prize at a place that puts coupons right in your mailbox!!
By Robert @ 04/01/08 01:21:21 PMreport abuse
Saving $5 per day
I have been saving $5 a day since I heard Clark suggest it a couple of years ago. I have had cash when I needed to take a trip, help my kids or surprise my husband with something nice. I also have put a nice cushion in my checking account. I don't miss it and it makes me feel more secure. I also save all my $1 bills and change.
By Jeannine @ 04/01/08 11:01:35 AMreport abuse
$5 Savings
My husband and I opened a $5 savings account, meaning we don't spend our $5 bills, a little less than 3 years ago. We currently have saved over $8500 and are still going strong. What started off as a novelty just to see if we could do it has really paid off!
By Raigan @ 04/01/08 10:57:19 AMreport abuse
Pennies
I have an ING Direct account that takes $35 out of my checking account every week ($5 a day) and since I budget it out, I even don't notice. On the rare occasion I do have cash, I always break the dollars and pocket the change. Then, ALL of the change goes into a jar as soon as I get home. Once a year, we roll the coins and put the rolled change in the savings account. Last year, we had $250.00!!
By Reagan @ 04/01/08 10:21:57 AMreport abuse
Make lemonade for free when eating out
When eating out, I always ask the server for about 4-5 lemons and order water to drink. I then use the free water and free lemons to make lemonade. I also give my two teenagres a choice as to what they can drink when eating out: 1) order a soft drink and pay for it themselves or 2) get water. The price restaurants charge for soft drinks are way too high.
By John H. @ 04/01/08 09:08:39 AMreport abuse
Gas station stops
Take a look at people when they go fill up their tank the xtra $3-5 spent on sodas and snacks, can add up too!
By Omar Ortiz @ 04/01/08 08:58:38 AMreport abuse
Drink water when dining out
It is really funny but the one, painless way I've saved at tidy sum is drink water when dining out. The price of fountain drinks and tea are not in your mind when you are looking at the menu. The water is better for you AND you save without even trying.
By Ashley @ 04/01/08 12:46:49 AMreport abuse

unwanted loan offers

I have recently checked my messages on my answering machine and I have several automated messages offering car loans and mortgages.This is very annoying,how can I stop these leeches?

By John Henry @ 08/09/08 03:30:25 PMreport abuse

lost my job to a plant closing

My plant shut down at the end of May. My wife and I have three 401k that are doing nothing. What should we do, invest in a IRA for now or what?

thanks

By Doug @ 07/30/08 03:07:48 PMreport abuse

saving accts. for children

My son is 8 years old and has about $3000 in a savings aact. with Bank of America. The intrest rate is pitiful!
Have you got any suggestions were he can put the money for a resonable return?
Many Thanks

By Robin Toone @ 06/20/08 03:14:05 PMreport abuse

CAR INSURANCE APPRAISAL

Hi Clark, Please let the listeners know also that additional to the Kelly blue book appraisal value of a car;any improvements made to the car like off the market Rims,maintenance, radio, etc. increases the value to the car as long as they have their receipts and should be included to the final appraisal price.

By Richard Minto @ 06/16/08 03:35:23 PMreport abuse

$20 today vs $400 in 6 months

I would take the $20, figuring that I would get $0 if I waited the 6 months.
If I believed it I'd take as little as $22 in six months rather than twenty now :-)

By Chris @ 04/16/08 05:48:41 PMreport abuse

$5 a day

Hey guys This plan really works. I did this for 4 years, while I was in college. I was let go from my job and I was able to live off those savings for a few months until I found a job. It is so worth the $5 a day. Please do it for yourself and your children

By Tatjyana Allen @ 04/15/08 01:46:23 PMreport abuse

My husband and I have been saving our change. You would be surprise how much change adds up. $5 a day is a very good idea. I will start this tomorrow. Back to the change, one time we saved close to $1000. We use to make a game of it. Who could save the most in separate piggy banks. Now we are using one bank at a time. I got tired of wrapping pennies with the rest of the money that I separated the pennies from the rest of the change. Every little bit helps.

By Karen @ 04/13/08 04:57:31 PMreport abuse

Pay Off and Pay Ahead

I've learned over the years that when you make your last payment on your car don't start spending the money somewhere else. Instead, continue writing that check and put it into a savings or money market account. When you need to buy a new car, you'll have your trade-in plus all the money you've been saving to put toward the cost of the new vehicle. I've been able to pay cash for my last two vehicles by using this savings technique.

By Johnnie @ 04/13/08 02:58:25 PMreport abuse

I travel a lot, so I eat as many as 3 meals a day in restaurants. Some are charging nearly $3 for soft drinks now, so I grab a free coffee in the hotel lobby and drink water with my meals. While not everyone eats in restaurants so often, most people can save a few dollars by taking a reusable water bottle and refilling it at the water cooler instead of stopping at the convenience store for a soft drink.

By Tina @ 04/13/08 11:49:35 AMreport abuse

$5.00 saving a day

I started saving dollar bills about 7 months ago. i now have 3779.00 youll be amazed how fast they add up!!!

By Annie @ 04/12/08 10:37:35 PMreport abuse

My husband & I live in a rural NY town, our combined income is around $79K a year with no car payments minimum cable, internet, & cell phone plans. I buy all our clothing on clearance sale, & also at the local thrift stores. Our grocery bills for a family of 5 are about $200/week. We have medical insurance with a $500 a year deductable & 20% co-pay. The credit card comanies we were so naive to begin business with are sucking us dry with finance charges & high intrest rates & we cant do it. Sadly it will be difficult for many americans to come up with $5 a day with the rising fuel costs we are a fraid of how we will survuve next winter.
We need the state & federal goverments to drop their taxes on fuel & develop REAL credit reform laws to stop the middle class bleeding!!!

By wamwarren @ 04/12/08 01:40:24 PMreport abuse

re: the nominal value of money by joe

Uhhhh....doesn't a recession mean that things become cheaper as the value of the dollar goes down and pulls everything down with it? Don't try to twist things, dude.

By Heidi @ 04/12/08 01:19:09 PMreport abuse

i started with 2 dollars a day for 6 months no im up to 4 a day a little goes a long way

By scott manes @ 04/10/08 12:19:05 PMreport abuse

Public Transportation

I ride the bus and save 10.00 per day on gas and parking fees.

By Tim @ 04/10/08 11:01:15 AMreport abuse

Savings

If $5 is too much, what I do is never break a $1 bill. I just put them aside when I get change. It is amazing how quickly it grows as well.

By Kathy @ 04/10/08 09:05:46 AMreport abuse

the nominal value of money

What Clark fails to mention is that inflation is approaching 20% according to John Williams at Shadowstats.com or also at nowandfutures.com so in 40 years, your 800K might buy you a bicycle. Look at Zimbabwe with 300,000% inflation. A loaf of bread costs like 130 dollars.

By Joe @ 04/10/08 03:44:18 AMreport abuse

saving $5 a day

It's amazing how so little can become so much!I tell my husband almost everyday, he'd save so much by just taking his lunch which he spends $8-10 daily. Thanks, Clark

By Alicia @ 04/09/08 06:11:19 PMreport abuse

Gas

I have always planned my trips/errands for the most of gas economy...and, I do watch my speed. TDhank you for all the reminders and info.

By Peggy Simonovich @ 04/09/08 01:08:30 PMreport abuse

$5 a day you say!!!

I'll encourage my 16 year old son to start this savings plan when Kroger calls him up for his 1st job, which I hope is very soon. Thanks for the info Clark!!!!

By helen @ 04/09/08 11:06:01 AMreport abuse

The other listeners' comments were very helpful, especially Bactrac about 401K's and pre-tax dollars.

By Nora @ 04/09/08 10:51:05 AMreport abuse

thanks

I have a real problem with saving, thanks for the $5 a day. I will work on this one.

By jo jackson @ 04/08/08 10:06:45 PMreport abuse

Saving $5 a Day!

I've been putting an extra $100 a pay period(every two weeks) into an on-line internet savings account that Clark informed me of for about 2 years now. It's amazing to see that that money grow! My mom always told me: "Pay yourself first, before you pay anyone else!"

By Clint @ 04/08/08 09:38:35 PMreport abuse

Interesting $5.00 a day does not sound like much until you multiple x 30 and then by 12. Clark, thanks for all the information you provide to the public. it sure has helped me.

By Kathy @ 04/08/08 08:39:19 PMreport abuse

Where is this possible

This info is always talked about and written about however nobody ever tells you where to go to set up these accts or to get these rates. Tell us

By Sherry Barbee @ 04/08/08 01:12:57 PMreport abuse

how

You alway print this stuff but you never tell how and where to put this money to do this with.

By Sherry Barbee @ 04/08/08 01:09:36 PMreport abuse

I might add.....

Make sure we as parents do not give money too freely to our children...I require mine to pay for their own college etc... If they live a responsible life, then I can give them money as a gift later... and add it to their saving that they have saved. They get a higher return on their self confidence when doing it on their own...Yes I have preached on going about being a prisner to finances if they are not controlled early in life. Debt can affect all area of their life, marriage..friends.. Why gamble with life like that...

By Ann @ 04/08/08 12:58:55 PMreport abuse

Recycling is good for the CRV and the land fills

I recycle plastic bottles. The redemption value is five cents for the small bottles and ten cents for the large bottles. The aluminum cans can be recylcled as well and every nickle and dime adds up.

By Anne @ 04/08/08 11:32:25 AMreport abuse

Saving money

I've been telling my kids this for years. They still won't do it. Taking money from yourself automatically is the only way to go. The part people don't understand is that they still have the money, it's not gone.

By Cliff @ 04/08/08 10:46:24 AMreport abuse

passing on

I have never been great at posteponing my spending or not being totally committed for every penny. I would like to change that for my 22 yr. old daughter. This suggestion will help her. Thank you.

By Mary @ 04/08/08 09:43:08 AMreport abuse

missing the point

I hear the unattainable 8.7 to 9.2% returns all the CPA's are whining about. Clark is trying to get you to focus on the pay yourself first then pay the bills. If you want the nitty gritty save this 5 a day through your 401K or other work plan and between pre-tax and tax sheltering by reducing your income the % returns could well exceed 10% assuming you have this option. Most people have this type of savings avenue and like me have a long way to go before reaching the maximum contribution limits. KUDOS to Clark for the insight - otherwise your $5 investment in drinks is lost when it is consumed except for the return which with a fountain drink/mochacheeno is usually unwanted weight gain from too much sugar!

By bactrac @ 04/08/08 08:46:02 AMreport abuse

Saving $$$$$

I grew up in a large family; I learned how to save money and how to be frugal.
I have $20 a week held out of my paycheck and it goes into savings. If I
don't touch it, I can save $1,000 a year. It's a great way to save money and I don't even miss it. I just watch
it grow. :o)

By Glo. in Oregon @ 04/07/08 11:10:28 PMreport abuse

The "Budget"

When my wife and I were first married in 1979 we had a combined debt of about $6000. She didn't think that we would ever get it paid off, but she didn't know about the "Budget". I pulled out a sheet of graph paper and told her that it represented the next twelve months and that there would be a diagonal line from 6000 to zero.
I knew that she had no idea how she spent her money, so I asked her to just tell me when she bought something and give me the receipt. With my Apple II computer and the old Visacalc spreadsheet I created the "Budget". After a few months I was able to show her our spending patterns and how we were reducing that debt. She was amazed!
Over the last 29 years the "Budget" has become quite a bit more sophisticated, now I can tell if she's found a penny on the sidewalk (thats called variance). This probably wouldn't work for everyone but it works for us. The "Budget" now is really our spending plan. It enables us to plan for a lot of nice vacations! I really enjoy your program Clark and I learn something every time I listen.

By Ken Callen @ 04/07/08 10:38:15 PMreport abuse

Bike Commuting

with rising gas prices, making small trips on a bike can really add up!

By Daniel @ 04/07/08 06:18:51 PMreport abuse

I bike cummute to work everyday. its about a 28 mile round trip, which in my car works out to about 5 bucks a day. An extra $25 bucks a week in my pocket really adds up! I know this is extreme for many people, but little trips add up too.

By Daniel @ 04/07/08 06:11:54 PMreport abuse

Split and save

My wife and I have gotten into the habit of buying just one meal and splitting it when we dine out. We might also buy a dinner salad to split as well. This way we consume less and save money. We sometimes splurge by using the saved money to buy drinks (at happy hour to get a better deal, of course), otherwise we just order water.

By Bill @ 04/07/08 06:05:02 PMreport abuse

Saving...yes!

We need you to run for Mayor City of Atlanta...PLEASE...save our city!

By Atlanta Pearl Girl @ 04/07/08 05:43:32 PMreport abuse

I live in NYC, which has a great public transportation system. I can get within just a few blocks of just about anywhere in the city, all for just a $2 subway ride. An unlimited pass costs just $81 (which computes to 40+ rides, or 20 round trips.). I easily use these trips for just commuting. But I also use this pass all weekend long, as well as other trips after work. Many friends of mine insists on getting a cab, but again, those $5-10 cab rides add up pretty quickly! Taking full advantage of the unlimited card (I take at least 50-60 rides a month) can really save you extra dough.

By cw @ 04/07/08 04:57:34 PMreport abuse

Four or 5 lemons?

Surely you're joking when you say you order 4 or 5 lemons. At 60 to 80 cents per fruit you're costing the restaurant at least a couple of bucks. This has to be a joke.

By Susan @ 04/07/08 04:48:39 PMreport abuse

clark where can I get this 9.2% interest rate?

Saving $5 per day is great and does add up to a lot of money especially when one uses a 9.2% APR which is what is required to hit the total savings amounts listed above.

A more realistic 4% APR still yields excellent savings:
$22K after 10 years
$59K after 20 years
$180K after 40 years.

By walter @ 04/07/08 04:47:34 PMreport abuse

Rip off the small guys?

John H said," When eating out, I always ask the server for about 4-5 lemons and order water to drink. I then use the free water and free lemons to make lemonade. I also give my two teenagres a choice as to what they can drink when eating out: 1) order a soft drink and pay for it themselves or 2) get water. The price restaurants charge for soft drinks are way too high." The restaurants have to make up their "lemon" money somewhere. Lemons ain't free, dude! Neither are overhead and taxes

By Kay Butler @ 04/07/08 04:43:05 PMreport abuse

$5 A Day

To have $29K after 10 years or $105K after 20 years from saving $5 per day, you need a return of approximately 9% AFTER TAX

By dan h @ 04/07/08 04:28:13 PMreport abuse

Get in the habit of saving NOW

Once you are in the habit of saving, it becomes easy and you won't miss the money. I became a much better saver after taking over my parents finances about 6 years ago. They pull a ton of money from our family business, but at their retired ages, they had no savings, no retirement accounts and no health insurance. I have been able to slowly hide some savings for them, set up an IRA for my mom and an HSA health savings account too. If this would have been started a long time ago, the amount needed every month to get them in a more reasonable place would have been much less. If you don't save for your future or even for small household emergencies, you will end up in trouble later on in life. You can't rely on anyone else but yourself, so pay yourself first.

By Miss Beck @ 04/07/08 04:27:09 PMreport abuse

$5 saved per day

I compute the returns implied in the 29K after 10 years and 105K after 20 years to be 8.7% to 9.2% AFTER TAX.

By danbhill@mindspring.com @ 04/07/08 04:24:19 PMreport abuse

Saving Money

I love saving money, yet I don't feel deprieved. I always find ways to save. Especially when eating out, never order beverages, (usually bring my own bottled water and rarely order desssert. I make very good chocolate chip cookies and those are always available). Also if I can, I purchase a lunch version to go, and reheat it for dinner. The portions are almost the same size, but the prices are significantly cheaper. I have a 17 year old TV, a 5 year old car, furniture that is still stylish and at least 15 years old. What really keeps me savings is that thought that anybody can be homeless! Scarry.

By Wendy @ 04/07/08 04:20:20 PMreport abuse

$5 per day

We started saving $5/day several years ago in a stock DRIP. Now we have 5 different stock DRIPs valued at $22,000. Also, I continue to drive a 24 year old car. I used the car payments to buy property on Lake Lanier.

By Penny Pincher @ 04/07/08 04:06:01 PMreport abuse

Making Lemonade

I think it's wrong to order water and lots of lemons because the lemons and the sugar (and the water) all cost the proprietor. However, it's also wrong to charge extra if someone wants just one or two slices to cut the taste of clorine in the water!

By Barbara @ 04/07/08 03:42:20 PMreport abuse

Saving $5 a day

It sounds easy; but what do we do with the money? Where do we keep it? how can we end up with $29K after 10 years?

By Juan Carlos @ 04/07/08 03:33:51 PMreport abuse

the $5 per day savings yielding $29K after 10 years works out to 8.7% AFTER TAX interest; the yield of $105K after 20 years works out to 9.2% AFTER TAX interest - Please let me know where I can get these returns

By dan hill @ 04/07/08 03:33:45 PMreport abuse

Loose change

I never spend change, always breaking a bill to pay for anything. One year, I bought a great digital cameral, the next year a lovely pair of 80tw diamond earrings, the 3rd year a wonderful service for 8 Villroy & Boch china. I now have enough for another nice purchase - which will be a new laptop...............feels like gifts!

By Erma @ 04/07/08 03:09:02 PMreport abuse

I save with ING too!

I started my $5/day savings in October, just like Reagan! At first I had to do it day by day, then week by week, now I can do it month by month. Also, even when I take money from that account, I always put it back when I get it. One challenge is to save $5/day, then when that becomes relatively easy, add another $5/day, and keep doing it! It forces you to 1) save, and 2) find other ways to make money so that you stick to your plan!

By cooliojones @ 04/07/08 03:08:31 PMreport abuse

I own a restaurant, and I happily give water for free, but when people want sugar and lemon,I charge for lemonade. We have to pay for those lemons and water cups and straws, so please, water only.

By Jan @ 04/01/08 10:23:33 PMreport abuse

Save $5-$10 each time dining out!

My wife and I try not to eat out much. When we do go out, we choose the restaurant by who has coupons. We get coupons in the mail and eat wherever has a "buy one Entree, get one Free" offer. The coupons are not that hard to come by, and they usually come in sets in the advertisements. The ones we don't use, we offer to people sitting near us in the restaurant. I am always surprised to see everyone paying full prize at a place that puts coupons right in your mailbox!!

By Robert @ 04/01/08 01:21:21 PMreport abuse

Saving $5 per day

I have been saving $5 a day since I heard Clark suggest it a couple of years ago. I have had cash when I needed to take a trip, help my kids or surprise my husband with something nice. I also have put a nice cushion in my checking account. I don't miss it and it makes me feel more secure. I also save all my $1 bills and change.

By Jeannine @ 04/01/08 11:01:35 AMreport abuse

$5 Savings

My husband and I opened a $5 savings account, meaning we don't spend our $5 bills, a little less than 3 years ago. We currently have saved over $8500 and are still going strong. What started off as a novelty just to see if we could do it has really paid off!

By Raigan @ 04/01/08 10:57:19 AMreport abuse

Pennies

I have an ING Direct account that takes $35 out of my checking account every week ($5 a day) and since I budget it out, I even don't notice. On the rare occasion I do have cash, I always break the dollars and pocket the change. Then, ALL of the change goes into a jar as soon as I get home. Once a year, we roll the coins and put the rolled change in the savings account. Last year, we had $250.00!!

By Reagan @ 04/01/08 10:21:57 AMreport abuse

Make lemonade for free when eating out

When eating out, I always ask the server for about 4-5 lemons and order water to drink. I then use the free water and free lemons to make lemonade. I also give my two teenagres a choice as to what they can drink when eating out: 1) order a soft drink and pay for it themselves or 2) get water. The price restaurants charge for soft drinks are way too high.

By John H. @ 04/01/08 09:08:39 AMreport abuse

Gas station stops

Take a look at people when they go fill up their tank the xtra $3-5 spent on sodas and snacks, can add up too!

By Omar Ortiz @ 04/01/08 08:58:38 AMreport abuse

Drink water when dining out

It is really funny but the one, painless way I've saved at tidy sum is drink water when dining out. The price of fountain drinks and tea are not in your mind when you are looking at the menu. The water is better for you AND you save without even trying.

By Ashley @ 04/01/08 12:46:49 AMreport abuse

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Mar 31, 2008 -- The real impact of saving $5 a day

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