How much do I have to save to make $1 million dollars

For most of us, it's hard to figure or imagine how much money we'd have to save to make $1 million dollars or whatever your financial goal is.

Tangerine bank makes it easy for you! They have this great tool called the Goal Getter. All you have to do is input your savings goal amount, the amount that you will save, and how often, then you click Calculate, and the Goal Getter tool will then project how long it'll take for you to hit your savings goal. It's an amazing tool and very motivating to start saving!

Try it out for yourself when you open up a Tangerine bank account!

http://www.tangerine.ca/en/index.html?fb_ref=Default

You never know unless you try!

 

I've posted several ads on Kijiji in hopes to earn some extra cash. It looks as if the business services is not getting much of a response. The business services are 1) Business consulting 2) E-newsletter creation. I think what I'll do is try posting on LinkedIN which might be more suitable for the intended target market. I will also re-post the ads above so that my ads get listed on page 1.

The idea of helping people do their groceries is not getting much traction either. Perhaps the idea is a dud. I've posted a few other personal things on Kijiji and what I'll do is adjust the price to see if it entices anyone.

At the end of the day, it's always worth a try listing items for sale or offering your skills/labour for cash. You never know unless you try!

In thinking about other ideas to generate additional streams of income, I will be working on 2 projects upcoming. My goals outlined below:

1) Publishing a book on barter for businesses - My goal is to have a rough draft of the book completed for end of month March 2015. I'd like for the book to be ready for lainch latest in May 2015.

2) Publishing a photobook for newlyweds. The photobook will have advice from married couples, and the first page will allow the person buying and gifting the photobook to insert their own photo with their significant other, along with their own words of wisdom.

Tightening up the belt

It's a good exercise to continually review your monthly expenses to see where you might be able to save some money. The money that you save, you can put towards your savings goal!

I would recommend listing all of your expenses on a spreadsheet, then tracking those numbers from month-to-month, then once you've populated data for a year, you can then start tracking your month-to-month from the prior year. Make it like a game. Wherever you can shed expenses, you win!

In looking at my own personal and business expenses, I've listed below areas where I believe there's an opportunity to reduce my expenses:

- Negotiate for a better interest rate upon renewal for my primary residence and 2 rental properties
- Be mindful of electricity and heat; buy energy saving bulbs; compare ENMAX vs. Direct Energy
- Consolidate bank accounts so avoid paying extra fees
- Re-evaluate TV/internet plan with other service providers
- Be mindful of cell phone usage
- Control spending on food and entertainment

In reference to comparing ENMAX vs Direct Energy, for further information - please check out:

• http://www.directenergy.com/alberta/electricity-plans
• https://www.enmax.com/ForYourHomeSite/Pages/Rates-EasyMax-Electricity-After.aspx?modalNoScroll=1&modalNoBezel=1&IsDlg=1 

I've always been on a variable rate plan with ENMAX but curious to know if a fixed rate plan might be able to save me some money or not?

Get into the habit of paying yourself first

We've all heard it before. Pay yourself first. Pay yourself at minimum 10% of your pay cheque. It's easier said then done. I think often times we pay all of our bills first, then whatever is left over we try to save, but then end up spending those funds on other things like clothes, food, or whatever else pleases us. Then before you know it, poof, it's gone and we have no actual savings.

It'd be pretty interesting to know the stats of how many people actually pay themselves first?

I'm going to start with $350 and I hope to raise my minimum over time. It's all about trying to create a habit and thinking long-term.

On another note, I got a notice from Tangerine and they've deposited an extra $50 into my account. Pretty cool for only having to open up an account with them. You will have till March 31, 2015 to qualify for their money bonus of $50 for opening up an account, and $25 for setting up an automatic savings plan with them for a minimum of 6 months.

Finding a roommate

  

A great way to earn an additional income is to find a roommate and rent out a room or your basement at your home. Living with a roommate is not for everyone, but if you can tough it out, in the end your bank account will be smiling and it's just another tactic to inch your way closer to your goal. Remember, think long term and what this money can do for you!

Thinking back to when I first bought my townhouse back in 2002, I should've rented 1 or 2 rooms or even the basement right away. If I had 1 or 2 roommates, the additional income earned would've been awesome! I could've socked that money away and let it sit and earn interest over time. It's always hindsight. Should've...Could've...Would've...Hopefully, if you are young and reading my blog, you should definitely take to heart and rent your place out. I guess on the plus side is - if you have roommates, you certainly won't get bored and will have drinking buddies for sure!

So, with my situation, I know of a friend who's looking to rent. I've reached out to him and will be letting him rent my basement for $600 per month. Of course, I had to get approval from my wife! We've agreed to let him stay till the end of August so that's 6 months of rental income totaling $3,600. The beauty of this is, I don't have to put in any additional work hours to make an extra $600 per month.

Here's a long shot...

If I believe I'm going to win the lotto, perhaps it'll happen?! Ok, don't hedge your bet on winning the lotto anytime soon. Your odds are likely much better making $1 million dollars through smart financial planning than winning the lottery.

It surely doesn't hurt to play once in awhile because you never know unless you try, however, it's important to not make it a habit. Your money spent on lotto tickets is better kept saved in your bank account!

Finding the right bank and letting your money work for you!

Now that I have a bit of money saved up, it's time to search for a bank that'll help me earn some interest on my money. In searching the internet for the bank that'll give me the best bang for my buck in the interim, I've compiled my findings below:

BMO: No minimum, earn 0.80%
RBC: No minimum, earn 0.80%
TD: Minimum $5,000, earn 0.80% 
CIBC: Minimum $5,000, earn 0.85%
PC Financial: No minimum, earn 1.05%
Tangerine: No minimum, earn 1.05%.
Scotiabank: Tiered interest. Less than $4,999, earn 0.10%. $5,000 - $24,999, earn 1.15%. $25,000 and over, earn 1.30%
ATB: Tiered interest. Less than $4,999, earn 0.10%. $5,000 and over, earn 0.95%

Scotiabank pays the highest interest, however, you need to have in your account $25,000 before you can start earning 1.30%. They even have a claim on their website saying it's the highest interest amongst the big 5 banks.

The bank in my opinion that tops all is Tangerine. They give a bonus of $50 cash for opening up a new account with them if you deposit a minimum of $100, and you can also earn an additional $25 for signing up to their automatic savings program for a minimum of 6 months. That's $75 in free money that they're giving away. Further to that there are no fees or service charges which is a huge bonus! Last, till the end of March 31, 2015 - any deposits will earn you 2.5%. Guess I better open up an account and deposit my money! Go check out Tangerine at https://www.tangerine.ca/en/index.html.

The obvious choice for me is Tangerine. Let's go Tangerine!