Many things have been written on how to invest and save for retirement, education, a new car or whatever. I will admit that some of them are posted by me – just review the archives and you will find a huge list. I honestly believe that I have provided you with wonderful advice on how to make a financial change in your life – but, like starting a new diet – some programs are just hard to stick with to get you to where you need to be.
Then it dawned on me to share something that I discovered in my life that was keeping me momentarily satisfied and yet at the same time digesting my very important goals away. You see, like most people, I work an average of five days a week. Routinely, I spend over $5 a day on food and beverages that are in addition to the cost of my lunch. Oh, you may know what I am talking about: the $1 vending machine snack (candy bars are my favorite), the inexpensive $1.25 cup of coffee that I have twice a day, $1.18 for a pack of gum, and $1 for a healthy snack in the afternoon to satisfy my guilt and to tide me over. This is my formula that gets me through the working day. Most people have one. So what is yours?
The problem with mine is that it is an average of $5.68 a day for something that is 1) not really good for me and 2) a waste in so many ways J. You see, I am digesting my financial success away and I am doing it to myself. I have nothing to show for this action at all. It does not improve my current life and it doesn’t satisfy my true needs either.
Here is the kicker – if I put away $5 a day (that I obviously have) five days a week, I may not be writing this blog right now from my office. Instead you may hear from me on some beach in the South Pacific. You see, this equates to $25 per week or $1300 per year without any compounding of interest. Now if I strive to invest it to earn an average of a 5% return, this will create an account close to $7000 in five years. Can this money be used toward my real needs? Is it a nice deposit for a new car, deposit on a new house, money toward home improvements or a start toward my child’s education? You bet it is.
Well, I decided that whatever I spend on wasteful digestive things, I will match in depositing that amount in a saving or investment account. In reviewing my spending habits on a monthly basis, I can see where the waste is going. To counter this loss, I have made it easy to turn the problem around by having the $25 a week be automatically transferred from my paycheck to an account I call my wealth check. By doing this, I am 1) able to think twice about how I am wasting money on items that have no meaning, and 2) creating a diet that I can sustain as long as I want. This is a diet that I can stick to that leads to financial success. Why don’t you try it and Digest Your Way to Financial Success!