What difference can an extra $10 a week income make? Most people think it can’t make much difference. Most people will spend it. If you are persistent and consistent with getting and growing that $10 a week, you might be pleasantly surprised at the results.
Here is what you could do with that extra $10 a week.
You could get 2 six packs of beer, 7 – 2 liter bottles of Coke, 5 lottery tickets or a bottle of cheap wine. There would be no growth (except around your middle or if you beat the odds and won the lottery).
If you put $10 into a tax free savings account at 2% interest (assuming you could find someplace that pays that much!), compounded monthly, in 10 years you would have $5757. In 20 years you would have $12,788 – based on Bankrates.com’s Compound savings calculator.
Buy stock with it.
You can invest directly in company stock, with no broker fee through a number of programs, including direct stock purchase plans such as Computershare; Ing Direct Sharebuilder type plans; Employee stock purchase plans and the like.
Most of these would require at least a $50 minimum first purchase, some more – a few don’t have minimums. Do a web search on ‘Direct Stock Purchase’ and you will see individual companies, such as Disney, Yahoo, Coca Cola and more that allow the public to invest in their companies stock without a broker.
Pick your stock, set up an automatic purchase and in a few years you will have a decent position in the company. Fees may apply, but they are a lot less than dealer commissions on a purchase. A disadvantage at sell time is that some of these do not let you sell at a specific price and sometimes not even at market price.
These types of plans can be great for introducing your next generation family members to investing as well.
Pay down credit card debt with it.
If you have a balance on your credit card, you are probably paying around 16.75 % interest on it. Lets say you carry a balance of $300 and want to pay it off by applying the $10 extra dollars a month to it.
According to Calcxml “By paying an additional $43 per month ($10 a week * 52 weeks/12), it will take 6 more payments or 0.5 years to pay off the remaining balance. Interest will amount to $15. This represents a savings of $72 in interest if you only made the minimum payment amount each month. You will also pay off the credit card 2.7 years sooner.”
By applying $60 more over 6 months, you save $72 in interest!
Start a small business with it.
You could take that $10 a week and put it into a financial blog – along with some good old fashioned sweat equity.
A domain name costs about 9.95 a year. Hosting fees for multiple domains is about 9.95 a month. Hire a staff writer to keep up with your content by writing 2 articles a month at $20 per article. Work on getting links, building up content and marketing your site and you will get page ranks, which attract advertisers. Sign up with affiliate programs and adsense to jump start a revenue stream.
It takes hard work and intense focus over long periods of time, but many folks make a side income online by doing so. Crystal at How I Make Money Blogging is one of them.
How to get that extra $10 a week.
- Buy $10 less each week at the grocery.
- Bring your lunch to work instead of buying it.
- Stop buying those lottery tickets.
- Save gift money instead of splurging with it.
- Get rid of magazine subscriptions and use the internet instead
- Turn down the thermostat in winter and
- Other combinations of small changes that add up.
- Work an extra 2 hours per week at minimum wage.
- Write content for online sites once every two weeks at $20 per article.
- Clean one house every other month at $80 – $100 per house.
- Babysit for 2 hours a week at $5-$8 an hour.
- Mow someone else’s grass once a month at $40 a yard.
- Sell stuff you don’t need or use – books, DVDs, toys, extra garden produce, electronics and more. Who doesn’t have too much stuff?
- Recycle aluminum cans once a month (get them in bulk from work).
- Sell back unused gift cards.
What do you think. Is it worth the effort to try to best use that extra $10 a week? How can folks be consistent in their efforts to do so? Why would someone not want to do this?
Marie at Family Money Values wants to help families understand the potential consequences of wealth. She encourages visitors to take the long view and pull all family generations together to nourish the family legacy and wealth.