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Transcript: Finding money to save

Anchor Intro: Everyone knows they need to save money, for emergencies, for retirement, for that proverbial "rainy day." You know what you should do, but how to do it can be the catch. If you're having a hard time finding any extra cash to stash, Bankrate.com can help you avoid falling into some common money pits.

Voice over 1: When it comes to finding money to save, you have to plan. But many of us don't.

SOT: "Most people, or a lot, will spend more time picking out the color of a new dress, or a new suit, or a car than on finances and their finances are gonna last their whole life!"

Voice over 2: The easiest way to start saving is to first track where every dollar goes for one month.

SOT: "...we find these, what we call 'money pits' and we help them reposition, for example…maybe going out to lunch, buying lunch every day, and you can't do that..."

Voice over 3: That's a main "money pit" -- being a restaurant regular!

Voice over 4: Chew on this: Eat dinner out twice a week, and say it costs you about 20 bucks a meal. You're eating away $160 a month. Instead, put that in a retirement fund earning an average 8 percent, and in 20 years, you'd have more than $91,000!

Voice over 5: What about things like pedicures? You might argue about whether it's pampering or necessary...

Voice over 6: but if you do it twice a month, you can easily drop 50 bucks. Invest it instead at 8 percent, and 20 years later you're up by 28 grand.

Voice over 7: Love your daily lattes?

Voice over 8: Giving up just two specialty coffees a week can save you $32 a month. That can add up to more than $18,000 in 20 years. So you're saving money and calories, and these days one latte costs you about the same as a gallon of gas!

Standup: Most of us have a "money pit" we can avoid. Track your spending honestly to find it, then stash that cash! Saving even a few bucks is better than doing nothing at all. For Bankrate.com, I'm Kristin Arnold.

Bankrate.com's corrections policy
-- Posted: August 1, 2008
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