Return to Virginia Business - October 2002

It isn't THAT hard to save

Saving money is hard during these tight times. Or is it? This conundrum was revealed by a recent survey by the GE Center for Financial Learning. Some 53 percent of Americans sampled said they can’t afford to save. Yet 58 percent spend regularly on frills such as dining out. The study also revealed what most Americans probably already know — that those earning more than $100,000 annually are more likely to save for all sorts of long-term goals such as paying off debt, sending a kid to college or the all-important retirement.

So, with the stock market and Social Security no longer sure things, what can we do to save? The GE Center for Financial Learning has put together this list of savings tips. They could save big bucks over a 30-year period, assuming the money is put to work in a financial vehicle averaging 8 percent interest compounded annually:

$30,000 — By bringing your morning coffee to work instead of buying that $1 cup at the office or deli
$20,000 — By renting a movie instead of going to the theater
$30,000 — Forego the salon and give yourself a manicure
$17,000 — Use only ATMs operated by your bank

Data: ARA Content