Sweat The Pennies

A snip from The Net Worth Workout: A Powerful Program for a Lifetime of Financial Fitness

With money, especially smaller sums, we’re tempted to be cavalier, as if every dollar held equal significance. Just as no calorie is “just a calorie,” no dollar is “just a dollar.” But over the long haul, aggregated into thousands of choices, the financial implications loom large indeed.

We make these small decisions every day with our money and with our time. People who have built wealth have done it on an even grander scale: They’ve made a decision to spend another eight hours a month planning finances, rather than watching television, talking on the phone, or, perhaps, working.

This is why cutting out or even just cutting down that Starbucks, or say, drinking alcohol, can add up to lots of savings in the long-run.

Most millionaires don’t get that way by sudden windfall, it’s by making the right, tiny, decisions, over and over again. — BEN POPKEN

Small Financial Decisions Matter [Free Money Finance]


Edit Your Comment

  1. Smoking Pope says:

    Cutting down on alcohol? Now you’re just talking crazy.

  2. BelBivDevolkswagen says:

    Agreed! Even Communist Russia didn’t skimp on the vodka!

  3. pestie says:

    There’s a saying I’m fond of: “Save a little money every day and at the end of the month, you’ll be surprised at how little you have.” Nobody ever became a millionaire by pinching pennies. If you want to become a millionaire, your options are:

    1. Be born into money (I’m looking at you, Mr. “President”)
    2. Marry into it
    3. Dumb luck
    4. Crime (not recommended)
    5. Put a little money in an interest-earning account and wait a really long time
    6. Start a business, then sell it

    For most people, the most practical approach is #6. And while penny-pinching can help a business to be successful, there’s definitely a point of diminishing returns. The real trick is to pinch the big pennies, and top it off by being both smart and a little bit lucky. I think you might have to work hard, too, which kinda sucks.

  4. RandomHookup says:

    The biggest secret is often not living beyond your means. I laugh at the number of folks I’ve dealt with hiring who make extremely good money, but have horrible credit because they are overextended.

    Must have the summer home, must vacation in Aspen and Cozumel, must have the most fabulous wedding…and a birthday party for the 3-year old that equals the tuition at a good private school.

  5. archer117 says:

    I know many of the “millionaire-next-door” types. The problem is, the habits you must acquire to accumulate money in that way will ensure you will never enjoy it.
    People with real wealth don’t sweat the pennies: they don’t have to.

  6. thrillhouse says:

    Most millionaires don’t get that way by sudden windfall, it’s by making the right, tiny, decisions, over and over again. – BEN POPKEN

    Spot on, Ben. Your average millionaire drives a two-year or older car. Its about being smart with your money consistantly. The majority of the time, large windfalls are more of a curse. Lotto winners are more likely to file bankruptcy or divorce than those who don’t.

    Do it slow, do it right. Invest wisely and save money.