The other day, I had a Spectrum salesman knock on my door. When I explained to him that I was already a customer, he told me to call support and get a lower rate.

Well, I called and they couldn’t get me the $50-a-month rate for 1 Gbps that the salesman said was possible, but they did lower my $70-per-month bill to $60 and locked me into the rate for 24 months. So, I’ll take that $240 in savings and put it into investments. Following the MMM Magic Numbers, multiplying a monthly savings of $10 by 173 simulates 10 years of compounding if the saved money is invested every month, which would give us $1,730 from our $1,200 in contributions. If we utilize the Rule of 72, we know that average S&P 500 historical returns will double our money every 10 years. So, this measly $10 a month will grow to $1,730 at age 48, $3,460 at 58, etc, and around $56,000 by 100. And that’s if you stopped contributing after the first 10 years. Imagine investing just $10 a month from 18 to 70.

18-28	$1,730	$1,730
28-38	$1,730 + ($1,730 X 2)	$5,190
38-48	$1,730 + ($5,190 X 2)	$12,110
48-58	$1,730 + ($12,110 X 2)	$25,950
58-68 (standard retirement)	$1,730 + ($25,950 X 2)	$53,630
68-78	$1,730 + ($53,630 X 2)	$108,990
78-88	$1,730 + ($108,990 X 2)	$219,710
88-98	$1,730 + ($219,710 X 2)	$441,150

That’s just $10 a month, not a day, not a week, a month. Imagine $100 or even more. This was my frugal thing this week — what was yours?

~~Miniwing~~
Investor, Stoic, Parent