The Pennies Do Matter

Posted Thursday, July 21st, 2011. Filed Under Financial Empowerment

I found this ‘reply’ in my Reader’s Digest magazine and I wanted to share it with you.

This response is by Jim Burnett from Kitchener who was responding to an article initially written. Here is what he had to say,”Contrary to what’s suggested in the article, The Latte Lie (Dollars & Sense, April ’11), the concept of getting rich by dropping those extras is bang on. By taking our lunches to work and coffee to work, my wife and I save over $4000 a year. While doing the right thing with “big” costs is a good thing, you do need to take care of all expenses.

Ask any doctor how to lose weight. He or she will tell you to write down what you ate, and that every calorie counts. Finances are no different. Being rich isn’t about making tons of money; it’s about maximizing the gap between what you make and what you spend.”

I love this message for it demonstrates an understanding of financial literacy. There are levels to literacy. There are those that cannot read at all and must begin at the beginning with sounds and phonetics and then there are those that learned the very basics and go through life using this to “get by”. Others, have the luxury and/or push themselves to fully read at a level about the average norm (maybe grade 3-5).

By writing everything down for one month you will really see where all your money is going — to every cent. It is daunting and eye opening at the same time for you really get a sense of how you spend your money. It is a choice of course and for those that continue to spend on coffees, or lunches or whatever, that’s ok. Please keep in mind if you are not in the luxurious state of freely spending and you do want to cut expenses, this is a great place to start. You do not have to go cold turkey so to speak. You can decide that you will bring a lunch and go out only one time per/week or every other week. Same goes for the lattes and coffees.

Be conscious, aware and make good financial decisions for yourself.

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