Compounding offers the opportunity to help you build wealth, or, if you’re not careful, can lead to significant financial problems.
7 Small Tweaks That Can Help Bring Big Savings
People often think a great deal about large financial decisions: a house, college or a dream vacation, for instance.
However, many people think less about the impact of their smaller, more frequent purchases made over years and years. While spending a few dollars here and a few dollars there may not seem like much, over time those small purchases can lead to missing out on a large sum of money.
To give you an idea on how small things can really add up, we’ve compared the spending habits of two different people, Joe and Jane. If you’re looking to save a little bit of extra money, here are some ideas of places in your budget that you may want to consider.
Of course, you aren’t Jane. Maybe you work 50 miles from your house and it’s not practical to ride your bike to work every day. Or maybe that gym membership and that coffee from the coffee shop are very important to you. That’s OK. No one really wants to sacrifice too much of what makes life enjoyable today for whatever will come in the uncertain future.
But it’s still important to think about how small monetary changes can make an outsized impact on your finances over time.
“It’s often smaller money decisions that people don’t think much about that, in the long run, makes it harder for people to reach financial success,” said Joe Correnti, senior vice president of brokerage product. “That’s why it’s important to remain diligent about where your money is going and to constantly evaluate if your spending is in line with your long-term financial goals.”
What spending habits have you changed to help you save more money?
Next steps: Read our post “Pay Yourself Today and Start Planning for Tomorrow.”
Not a Scottrade® client and wondering where to invest? Check out our various types of accounts.
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