We always seem to be focused on the ‘big things’ like a new house, a new car, a big raise or promotion. It’s natural and it’s good to have these goals. The problem is that we sometimes focus so much on the big prize that we forget that it’s the little things that, when added together and stacked one upon the other, that bring us to our goals.
You may really want a new car, and think you can’t afford it, not realizing that you fritter away much more than the car payment would be…only because you are not willing to look at what you are spending on a daily basis. Going out to eat more than you need to, throwing that extra gadget into the shopping cart that wasn’t on your shopping list, not shopping for better car, home, health or life insurance rates, these are all things that seem small or of not much benefit to watch, but try adding them up over time and see what happens.
Just $2 every day adds up to $60 a month, or $720 per year. $10 a day is $300 a month and $3,600 a year. $20 a day blown can add up to $600 a month! Can you see how this adds up?
What would $300 a month do for you? Pay down debt, needed car or home repairs, a finer, more professional or fun wardrobe. How about $3,600 a year?
You might say, “I don’t blow $20 a day.” I don’t know you and maybe you don’t. But do you really know that you don’t? Have you done a budget? Have you charted your spending for a month to see where it all goes? Have you checked with your insurance agent or looked online for insurance savings? I’ve met many who thought they couldn’t possibly spend that much, but upon humoring me for a month, they found out that they spend much more on the average.
You might have to change some habits or give up a few things you think you ‘can’t live without’ but you will find that what you gain (that new car, no more credit card debt, a new wardrobe, new furniture, a dream vacation, or a savings plan to accumulate larger sums) will more than change your perceptions about that $2 soda or $4 latte or whatever. Try it for 30 days and see what happens.
Check out this blog tomorrow for some insights on How Money Works and how this can make this 30 day trial even more juicy.
Thank you for reading.
Robert W. Craig, E.A.