Aug

The Little Things In Life Making Cents

Do you squeeze the absolute last smidgen out of the toothpaste tube, or use a spatula to get the last dribble out of the jam jar? Do you experiment to find the absolute minimum amount of detergent needed to get a load of washing clean? Have you worked out how many dollars a year you save if you buy home brand, or if you have one night a week without electric lighting?

Is it worth saving a few cents here and a few cents there? Is a penny saved really a penny earned? Sometimes I’m unsure whether I should reveal the savings I make on certain items. I imagine you saying “$30 a year, 10c a load, big whoop!” But taking control of the small savings is the essence of a frugal life and there are a few good reasons why sweating the small stuff can be worth the effort.

Small amounts across a range of expenses add up. A couple of dollars here and there may not seem like it’s worth the effort, but combining the savings across all expenses then it starts to add up. $1 saved on the bread, $1 on the milk, $2 on the eggs etc and before long you could reduce your grocery bill significantly. $20 saved on the groceries, $20 saved on the electricity, $10 saved on the telephone each month and you have an extra $50 in the pocket.

There are more opportunities to save small amounts than large amounts. It’s great to save thousands on the purchase of a new car, or hundreds on a new washing machine, but these purchases happen infrequently. The opportunity to make small savings here and there occur every single day.

It’s easy. Giving the toothpaste an extra squeeze, buying home brand, turning out the light takes little effort.

It is a strategy that is available to everyone. No matter what your circumstances are, anyone can save a few cents or a few dollars here and there.

Combining small savings with compounding increases the payload. I have written in the past about the power of compounding both as a means to increase savings and to reduce debt. It is a simple investment strategy that anyone can put into action, no matter how much money you have to start with. It can be surprising how much wealth you can build over time using basic savings coupled with compounding interest. Every journey begins with a single step. Don’t wait until you’re wealthy before thinking of getting wealthy.

You’re often saving more than just money. Saving money is a result of reducing consumption, recycling, reusing and the environment benefits just as much as your hip pocket.

It’s fun. Frugal people live to save money on the little things. The idea of waste seems unacceptable. The challenge to save a few cents gets the heart racing a little quicker. Thrifting is an easy hobby to get into and enjoy.