Look After the Pennies and the Dollars Will Look After Themselves

In Small Financial Decisions Matter, I gave 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 -- how they can add up to big money. Here are some more thoughts from the book on the same issue:

Your grandparents understood opportunity cost; chances are your parents mastered it, too. Both groups grew up believing in the adage, "Look after the pennies, and the dollars will look after themselves." The idea is to limit small purchases so that you can handle big ones when needed. It's a great formula for success.

This is the point of what I often try to communicate here at Free Money Finance. If we just focus on the basics, keep our spending under control and "watch the pennies," our financial lives will be much better -- and waaaaaaay better than the finances of most Americans. It's a simple set of concepts to understand but difficult to implement (because it requires discipline). However, those that are able to take the steps to control and manage their finances will see their net worth grow and grow.

For a few more thoughts from me on this topic, see these links:

• How to Get Rich in Three Easy Steps

• Even a Small Leak Can Empty Your Money Bucket Quickly

• How to Become a Millionaire (How to Become Rich)