How I am going to save $145 a month

You may remember that a few months ago I started to ride the bus to work two times a week. I feel good about that action because I save roughly $20 a month and help contribute to the green movement by consuming less fuel. 

Then I read my company has offered a PayFlex plan for mass transit commuters.  This allows employees of my company to deposit pre-tax money into public transportation program. On top of that, they’re giving takers of the program a “reward” of $15 a month.  After some calculations, I clearly saw this was the way to work.  My commute is about 22 miles each way. On average, that takes about 45-60 minutes to get from home to work and work to home.  If I ride the bus, it adds another 30 minutes to each way which may seem excessive and unbearable to some. For me, it isn’t too bad. I get to catch up on my readings and writing.   So here is how I’m going to save $145 a month.

1. Cancel my monthly parking membership at work – subtract $60

2. Stop driving my car to work – subtract $120 for gas savings

3. Other savings (pre-tax savings + $15 work life balance) – subtract $20

4. Get a metro card by enrolling in the PayFlex Mass Transit program – add $55

Total savings -145 = -60+-120+-20+55

I’m going to put this $145 in my Roth IRA account. That’s $1,740 a year, folks. And, since I’m a great believer in compounding interest, I project, in 10 years, at a saving rate of 10%, with more savings of $1,740 a year, this $145 is going to turn itself into a whopping $30,504.23. I admit finding a 10% rate of return is a bit hard in this slow economy. The bottom line is, you can save $145 or more a month too.

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