With all of the attention that big-picture financial issues like the debt ceiling, social security, retirement planning, the real estate market, and so on, it can sometimes seem like the small financial decisions that each of us make many times each day do not have all that much of an impact. Those little things do matter, though, because both the good things and the bad things add up over time. By recognizing that even small financial decisions can greatly affect out big picture financial situation, we can learn to treat those every day choices with more care.
Suze Orman, a well known personal finance guru, has compiled a collection of small things that you can do that will have a positive effect on your financial future. The first of these is saving money a little at a time. Often when we learn how much this or that expert says we should have saved or be saving we can get overwhelmed and choose to save nothing because we cannot meet that lofty goal of, say, setting aside ten percent of our weekly paycheck, or having a year’s worth of emergency expenses saved up. The habit of saving money, even if it is only a few dollars a week, will eventually add up to something.
Checking and rechecking your budget each month for areas where you can improve our spending habits can make a difference too. Even if cutting back to a lower priced cell phone plan saves only twenty dollars a month, that adds up to $240.00 a year with just that one simple change that you can use towards other financial goals. Other suggestions from Suze including maxing out your company-sponsored 401-k, investing (even just a little) in tax-free Roth IRAs, and protecting your family with term life insurance. Small changes to the way you manage your money may just result in you having more of it later on.