In his book the Automatic Millionaire David Bach discusses and illustrates the compounding expense of a cappuccino on a daily basis. As Bach points out to a young woman used in his example in the book who is struggling financially that her daily cappuccino purchases can add up to a rather large monthly budget item. Bach indicated that if she would spend that same money on investments for a retirement account or other savings plan the positive results would be mind boggling.
For most of us we can figure out expenses and areas in our monthly income and expense budget that are not wise choices. Ask yourself today what financial expenditures are you caught up in that are not very wise decisions. What are some areas that you can cut back on that could help put more money into your bank account? Are you putting enough money aside in savings and financial returns for the future ay this point in your life? These are good areas where you should remind yourself daily, and ask how you spend your money. Sure, maybe a cappuccino doesn't seem like much and we all may need one from time to time but is it really necessary on a daily basis? Could you buy a two dollar coffee mug and bring your coffee from home rather than stopping at the local coffee shop to purchase that paper cup of java? Instead take the extra funds and invest those into something wisely that will pay off in the long run for you and your family. Who knows how long this economic downturn could last for our industry, and if it is rebounding in your area, might it take another dip like experts are predicting? Make wise choices, and remember it's the little things in life that add up over time.