Small things produce large results. It’s the cumulative value of modest amounts over long periods. I heard an industry colleague profess that one pizza a week equates into $250,000 by retirement! From a lifestyle perspective, trading cars every three years isn’t a whole lot different than trading every two years. But the cumulative value of that change equals tens of thousands of dollars over several decades.
The same thing can be said for restaurant dining or rounds of golf or an extra thirty minutes of work each day. How much difference can any of these make in our quality of life? Cut back one pizza a week or skip the foursome on the fifth Saturday each month when it rolls around. Start work at 7:30 instead of 8:00 and see how much more productive (time is money) you can be.
Obviously, none of these little things are earth-shattering in and of themselves. Still, the differences they make are worthy of note. A few sacrifices today can make a huge difference later on!
- By Dan Danford, MBA, CRSP® at Family Investment Center