Look After The Pennies And The Pounds Will Look After Themselves
If you are like most people I am sure that you think that you know where every last cent that you spend goes to. There is an exercise that I would suggest that you undertake however. Get a notebook and write down every penny that you spend. Even if you go to spend a penny, write it down.
It will be amazing for you how quickly the pennies become pounds. I remember an old saying – look after the pennies and the pounds will look after themselves – how true that is.
Take the smallest sum you spend daily and multiply it by 365 to show how much you could save in just one year. Not only that, it could have been in a savings account gaining a little interest.
I hope that I have already explained why it is so important to start a financial budget. By being careful with the little things we spend our money on, we can benefit from a more long term financial benefit.
Small can sometimes be beautiful.
On a slightly higher level if you normally spend $10 in a local fast food outlet for your lunch, determine to make something at home and take it with you. You will find that you will save at least $5 a day which is equivalent to more than $1500 a year. Enough for a nice little vacation.
It is these little things like lunch and the daily newspaper on which you can make your savings more easily. You will still have an enjoyable meal and you can catch up on all the news on the television or on the internet. It will not affect your lifestyle at all.
You will find several similar ways to save money when you look for them.
Another thing that you should do is to set yourself some mid term and long term goals of things you would like to own. Let your mind wander as to what you would like.
For sure you should start putting a little away regularly with the intention of buying your own home at some time. You will need a nice tidy sum to put down as a deposit. Shorter term could be a new car or a special holiday.
If you choose to save for things you would like a lot, it will give you more enthusiasm to start saving money.
Follow me on Twitter here
Like this post? Subscribe to my RSS feed and get loads more!
Twitter: HansSchoff
says:
Hey Trevor, good point! It's amazing how much money you can save on food by not eating out – especially in the UK! I am always amazed how my girlfriend's mum is able to spend so little on food by not eating out; she has paid for incredible vacations to Barbados for example using just this tactic. Incredible to say the least. It's hard to believe but true. And until people get a hold of their expenses, they will struggle to ever get ahead or create wealth!
Hans Schoff recently posted..Creating Wealth – Ways to Make Extra Money Around Your Schedule
I find that people will do what is required to get money for the things they want. Some like the lifestyle of eating out, others prefer to go to Barbados.
I would say, if you can live without it then why spend money on it? I try to not waste money on things that I don’t really need, you can save so much by doing so. But I do buy things occasionally, kind of a reward for the hard work that I put in. Small things can really be big when we look at it in the long term. Nice article, Trevor!
I agree with you there Jerry, it is good to reward ourselves sometimes for the hard work we put in.