The Power of Small: Improve Your Finances One Step At A Time
, on May 13, 2010
Many people like to dream big and think big. Unfortunately, the sheer amount of effort to accomplish their big goals simply overwhelms them. For instance, take a routine activity like walking across the street. You take one step at a time and you get the job done. But if I ask you to leap across the street, could you do it? This is why you should dream big and think small!
Think small is a simple but powerful idea that helped many people succeed. The most popular example in personal finance is probably Dave Ramsey’s Baby Steps. Knowing that it’s too overwhelming for people to go from “broke and in debt” to “financial freedom”, he advocates taking small steps to turn your finances around.
Likewise, you can apply the concept of “think small” in many ways. For example:
- Instead of trying to add $5,000 a year to your IRA account, it’s easier to add $416 a month, or better yet $192 every two weeks.
- You can start your retirement today, by saving 25 times the value of your annual expense on an item. For example, let’s say you spend $100 a year on magazine subscriptions. You could set aside $2,500 and try to get 4% return on investment, or $100 per year from it. If you can accomplish this, your magazine expense is retired for life.
- You can make small changes to significantly improve your business’s bottom line. For example, by improving the number of leads, conversion rate, returning customers, revenue per customer, and lowering your costs.
Basically, you can break down any big goal into smaller, more achievable sub-goals. And likewise, you can achieve significant result by making small improvements. How can you apply this to your own situation?
- Don’t get paralyzed by the big picture and start making small adjustments today.
- Make small regular contributions to your retirement savings and emergency fund.
- Cut your household expenses $100 at a time.
Think small and do something today.
If you like this article, please sign up for our free weekly updates
Sign up for free weekly updates
About the AuthorPinyo
is the owner of Moolanomy Personal Finance
and an entrepreneur with over 20 years of business experience. He has a strong appreciation for business management, investing, and wealth building. He has written for many online publications, including American Express and U.S. News.
The information on this site is strictly the author's opinion. It does NOT constitute financial, legal, or other advice of any kind. You should consult with a certified adviser for advice to your specific circumstances.
While we try to ensure that the information on this site is accurate at the time of publication, information about third party products and services do change without notice. Please visit the official site for up-to-date information.
Moolanomy has affiliate relationships with some companies ("advertisers") and may be compensated if consumers choose to buy or subscribe to a product or service via our links. Our content is not provided or commissioned by our advertisers. Opinions expressed here are author's alone, not those of our advertisers, and have not been reviewed, approved or otherwise endorsed by our advertisers.