The Simple Trick to Turning $100 into $118,000

What if I said there was an easy way to come up with another $118,000 for your retirement?

You might be skeptical, but thanks to the power of compounding interest, all you need is $100 a month to have a six figure nest egg waiting for you at retirement. Or if your retirement fund is the least of your worries, there are plenty of other things $100 a month will buy you too.

Of course, if you're one of the 70 percent of families living paycheck to paycheck, you might think there's no way you could even come up with $100 a month. Rest assured, it's not as far out of reach as you think. We'll talk about how to come up with the money in a minute, but first, let's discuss all the good things you can get with just $100 a month.

What $100 a month will buy you

On its own, $100 doesn't seem like much. It might get you less than a week's worth of groceries, cable TV for a month or a tank and a half of gas if you're lucky.

However, if you have the self-discipline to set $100 aside each month, it can quickly add up.

• Put aside $100 a month and at the end of the year you'll have $1,200. Use that money to make an extra mortgage payment and you could slash more than six years off a $150,000 loan at 4 percent.
• Save $100 a month for five years, and you'll have more than $6,000 in the bank. That money will make a nice down payment on a new car or, even better, shop around for a good used car and pay cash.
• Or to really make the most of that money, put it in investments such as mutual funds. If you are 40 years old now, you could end up with more than $118,000 at age 65, assuming the market continues to average 10 percent annual returns.

And there are certainly plenty of other things $100 a month can buy. You might use the money for necessities like home repairs or you could finally have the cash to go on that monthly date night each month like you and your spouse have been talking about forever.

The easy way to save $100 a month

But how do you get that $100 a month? It's really simple actually.

For the past seven years, I've been teaching people how to save $100 or more each and every month. While most of your bills are fixed, the amount you spend on groceries is a prime place to save money.
Here's how to get that extra $100 in the bank each month.

1. Gather up coupons for the products you already buy.
2. Watch for those products to go on sale and then combine the coupons with the sale price.
3. Buy extras to fill your pantry with deeply discounted items.
4. Finally, menu plan from the pantry so you are eating from what's on hand and limiting most of your grocery purchases to only the most deeply discounted items.

SavingsAngel.com makes it easy to match-up the coupons to the deals, and we cover major chains like Meijer, Kroger and Spartan Stores.

It really isn't hard to slash your grocery bill. What will you buy with your extra $100 a month?