1. The Importance of Saving
A little bit of money can go a long way

2. What does it mean to be frugal?
Sparing or economical with regard to money
Simple and plain and costing little
“Cheap”

3. Why should you be frugal?
Being frugal does not mean that you can’t enjoy the things you still do
Don’t have to buy generic/store brand over name brand
Just know that these expenses add up over time
Can still enjoy same luxuries, just not in as high of frequency
Ex: don’t have to eat McDonald's every day after school
Opportunity costs
“Would I rather have this now or have more money later?”

4. Frugality in Action
Instead of going out for dinner with friends, you stay in an share some pizzas with them and split the costs
Hypothetically this saves you ~$40/week
$40/week x 52 weeks= $2000/year
If you invest the money you save, assuming a compounded return of 8% over the course of 40 years, that $40 weekly savings will reward you with $581,944!

5. Frugality in Action II
“Casual” Starbucks user spends on average $4/day
This will cost ~$56,000 worth of savings over 20 years at 6% interest
Starbucks “loyalist” spends around $10/day
Drinking away $141,250 in savings over 20 years
Frugality Application
Don’t have to drink Starbucks every day—make it a special occasion
Make your own coffee at home

6. Frugality in Action III
Smartwater
Spend ~$150/month on water ($1800/year)
At 8% compounded over 40 years, that’s $503,605 lost
Frugality Application
Instead of buying water bottles, you can get your water for free from your sink or a Brita water filter

7. The Earlier You Start, The More You’ll End With (Assuming 10% Annual Return)
Daily Investment
Monthly Investment
10 Years
20 Years
30 Years
40 Years
50 Years $5
$150
$30,727
$113,905
$339,073
$948,612
$2,598,659
$10
$300
$61,453
$227,822
$678,146
$1,897,224
$5,197,317
$15
$450
$92,180
$341,716
$1,017,220
$2,845,836
$7,795,976
$20
$600
$122,907
$455,621
$1,356,293
$3,794,448
$10,394,634
$30
$900
$184,360
$683,432
$2,034,439
$5,691,672
$15,591,952
$40
$1,200
$245,814
$911,243
$2,712,586
$7,588,895
$20,789,269
$50
$1,500
$307,267
$1,139,053
$3,390,732
$9,486,119
$25,986,586

8. The Tale of Two Brothers: William and James
William opened a retirement account at 20 and invested $4,000/year for the next 20 years
At age 40, he stopped funding the account but let it grow tax-free at 10% each year
James didn’t start saving until he was 40 and invested $4,000/year for the next 25 years
William saved $80,000 ($4,000/year X 20 10%) while James saved $100,000 ($4,000/year X 25
By the time they both retired at age 65, William ended up with $2.5 million even though he stopped saving before his brother even started saving, while James had under $400,000… a gap of over $2 million!

9. Start Saving Early!

10. Source Money: Master the Game by Tony Robbins
Pick it up for $15.00 on Amazon!