Small Financial Decisions Matter

Here are some thoughts from the book The Net Worth Workout: A Powerful Program for a Lifetime of Financial Fitness (see my rating for details) on how small financial decisions matter:

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.

A few comments here:

1. This section is not saying that we all should guard every dollar with our lives and never spend on something we want just to make ourselves better off financially. But it is saying that even a small leak can empty your money bucket quickly and that if you don't watch it, a dollar here and a dollar there can really add up.

2. On the opposite side, if you save a dollar here and a dollar there, you're on your way to becoming rich.

3. Millionaires take the time and effort needed to watch and track spending, budget, and fully manage their finances. Seems like a good example to follow, huh?