It’s funny how your perspective on money changes as
you get older. As an adult, I often tell myself that spending an extra $20 on a
toy for my son won’t really affect my budget.
Yet, I remember when I was...
· Five, and
I thought a dollar was a lot of money;
· 15, and I
thought $20 was a lot of money,
· 25, and I
thought $100 was a lot of money.
Now that I am in my thirties, it feels like I don’t
actually pay as much attention to expenses that aren’t “big” – ie., larger
numbers. But here’s the problem: Once we start moving upward in our careers and
our income goes up, we forget how hard it once was to make a dollar.
It’s important from time to time to slow down and
remember the true value (and meaning) of a dollar. Perahaps on its own, a
single dollar is not going to change your financial picture at all - but what
happens when we put many dollars together? That’s when we see a significant
impact on our life.
My challenge to you is that, whatever level of
income you are making, stop and take
a few minutes to really think about how far a dollar can carry you. Try this
simple exercise.
1. Think of an amount of money you regularly spend
without thinking twice, whether it’s $30 on dinner or $150 on clothes.
2. Multiply that value by 12.
3. Are you surprised by how much that is? Not yet?
Okay, keep going...
4. Multiply THAT number by four.
5. Still not surprised? Buckle your seat belt!
6. Multiple that number by two.
7. If you are still not surprised, then I don't
know what it will take! According to this formula, you will spend some “small” amount
of money 96 times without thinking in just one year.
Here are my numbers.
$20 x 12 x 4 x 2 = $1,920
I’m honestly shocked that I could spend this much
money without thinking in 12 months!
If I take one more step and multiple this number by 10 (years), I get
$19,200. Could this amount help me accomplish a significant goal? Absolutely.
How and when you spend your money may not make a big difference in the short term,
but in the long run, it will definitely have a significant impact.
Feel free to give me a call to talk more at 980-275-1627.
Ed Coambs
Edited by Reena Arora of Arora Media, connect on Facebook
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