Little Changes Can Make a BIG Difference!

I know a lot of people who say they just can't save or set aside any money to invest. Their budgets are just too tight, there is nothing they can cut back on to start an investment program. What they often overlook, however, are the small changes they can make in their lifestyles that lead to big differences in their future well being.

You've probably heard of the "Latte factor", where you give up the cup of latte a day and put that money into savings. This is a one very good example of a small change that can really add up to a big difference in the amount you save. When I first started saving for my investment program, one of the small changes I made was, literally, small change. By that I mean, I stopped spending my change. Any time I paid cash for purchases the change went in to my pocket and as soon as I got home, I put the change in a jar. It's such a small amount, you don't really miss it from your spending money, but it does add up. On average, I save $250 every 3 months this way. That adds up to $1,000 per year. If you started this habit at age 20 and put the money in a non-interest bearing account, you would still end up with $45,000 by age 65. Not a lot, true, but if you invested that amount in a dividend paying stock or even a money market account, you would have several thousand more by age 65. All from saving spare change!

Once you make one small change and stick with it, you'll find yourself looking for more ways to save and build your investments. You might shop for insurance on your car and find out you can save $200 or $300 per year or more, or you might decide to eat out less, or take your lunch to work. Whatever the case may be, by just saving small amounts, just making small changes, it can make a really BIG difference in your savings and investments.