|
Page 1 of 2
Let's start with the little things - saving on groceries, seeking out clearance clothing, getting discounts at restaurants and making sure that you don’t pay late fees on your credit cards and bank accounts.  These are examples of the little things that often take up time, but collectively they add up to quite a bit of savings. Can you ignore these little things and just focus on the big stuff and still build up a huge nest egg? If you believe the “Big Things” camp, obsessing over the little things is a waste of valuable time. Not so, says the “Little Things” camp, if you watch the little things you buy and use on a daily basis, you will build up plenty of wealth even you don’t nail the 3 or 4 big things in life. Who’s right? Read on and find out.
The Big Things
Buying a House
The big things are the huge financial drivers of your life. Buying a home is likely the single biggest spending decision that you will ever make. Making a mistake can be costly, as tens of millions of homeowners worldwide are starting to find out. The house you buy, its location, the timing of your purchase and how you finance it can make the difference between spending your life slaving to keep up with the monthly payments or building a huge equity that secures your retirement. A whole section of LiveCheap is devoted to articles that can help you make this decision.
Your Job
Probably one of the most overlooked big “decisions” and one that is often considered to be a random result is one’s career. But it doesn’t take a genius to figure out which industries are growing over time and which are shrinking. And yet, many people will stay in the same declining industry because it's all they know and they don't want to take the initiative to change career occupations or move up the chain of command. Decisions on your career path and how you ultimately improve your income have a huge impact on your ability to live below your means.
Major Purchases
Outside of a house, the largest purchase most of us make is our cars. Mastering the art of negotiating a car deal can save you thousands of dollars. If you show up at the dealer unprepared, you'll buckle at the first hardball counter that the dealer gives you. Given that you and your family are likely to buy 10 to 20 cars throughout your lives, it is a significant number. Another important factor that can substantially reduce the cost of owning a car is the length of time you hold onto an automobile. If you hold onto a vehicle for seven or ten years as opposed to five, you'll end up buying fewer cars over a lifetime.
The Big Things Camp would contend that if you just get some of these large things right, the rest of your financial troubles will work themselves out. After all, what difference does it make if you save $10 off your weekly grocery bill when you compare that to saving half a percentage point off your $400,000 mortgage each year. The Big Things advocates will tell you that if you do all the small stuff right but screw up the big things, you’ll never come out ahead.
|
