Are you a young parent and worried about how to build a nest egg for your children so they do not have to struggle like you might? Savings and compound interest are a great thing for our future generations. A simple $1.00 per day put in a savings account drawing and average growth of 8% will leave your child wealthy by the time they are ready to retire. But where do you find that money?
Simple things around the home use up our children’s future and all we have to do is save a little on our home utility costs.
To find you a dollar a day savings let’s start with your water bill.
1. When doing laundry, do full loads and not just the daily.
2. Check that you have no leaking toilets or faucets in the house. Even though it may seem like a small amount of water it is a constant flow.
3. If you water your garden do it between 6AM and 8AM to avoid evaporation
4. Use short showers as opposed to baths and do not use larger amounts of hot water. The minimum temperature that you are comfortable at will also save electricity. Check the temperature of your hot water heater and lower it to 160 degrees rather than 180 degrees.
5. Long term plant shrubs and bushes around your home. This will improve the value but will also use the runoff water from your roof more effectively. It will also help cut down n your heating and cooling bills.
6. Do not use a running faucet for brushing or shaving or doing the dishes and especially for washing your car.
If you use propane or natural gas to heat your home try the following.
1. Zone your home and only heat the rooms that you use. Most of us have areas of the home that we do not use on a daily basis, such as the laundry room.
2. Dress for the season, by wearing layered clothing in the winter inside your home it reduces the temperature you require to stay comfortable.
Other monthly expenses that you can control: Insurance cost, Phone bills, Internet, Pest Control and Pet care. While these all may seem like little things remember all you are trying to do is save $1.00 per day per child. $30 per month is all you have to save for each of them. And don’t panic that you can’t get an 8% return on investment now for them, the economy works in cycles and we will see higher interest rates soon.
Learning how to get your personal finances under control is not about thousands of dollars at a time but rather about dollars at a time. To find more advice and tips on your personal finances and retirement planning visit the resource block below.