Do you regularly spend a few dollars on everyday things that you could probably live without? We’re all guilty of it but we tend to ignore the bigger picture. Think about it: if you saved the money you spent on small, day-to-day purchases, you could quickly save up a large sum of money that could be better used to benefit you down the road.
Get familiar with the latte effect – the idea that unconscious spending on small things each day adds up to a vast amount over time.
Change your spending habits
While a dollar here and there may seem trivial in the scheme of things – as you can see, those dollars accumulate quickly. That’s not to say, however, that you should cut out all of life’s little luxuries. Pleasures such as medium lattes, manicures and lunches out can be enjoyed in moderation. It’s all about balance and discipline with your finances.
Think about your everyday purchases – do they provide long-term value? The answer will help you put your priorities in order and see where you can redirect your money.
How much could you be saving? Track your daily expenses to discover where you can cut back.