From Cindy's porch...

Do not underestimate the power of one and two!

Have you ever read an article or book about finances written by
an "expert" who explains that each of us should set aside 10% (or
more) of our pay for retirement or have 3 to 6 months of income set
aside in an emergency fund and you wondered just how the average
person could achieve this?

Do not underestimate the power of one and two!

This is usually the point where my eyes would gloss over and I would
close the book or magazine and think, "there is no way we can do
this!" (Unless of course we won the lottery LOL.)

Do not underestimate the power of one and two!

Then I realized that our financial future was not going to be based
on how much we earn, but on how much we spend (or don't spend).

Do not underestimate the power of one and two!

All of us have read about the financial effects of a daily latte or a
smoking habit, but how many of us have actually changed those habits
and reaped the financial benefits?

Let's look at this a little closer….

1) If you are like me and enjoy a couple daily sodas (from a
drive thru at $2.50 per day – sheesk!) then you are paying $912.50
per year on cold brown sugar water with caffeine! (Now you know what
MY New Year's Resolution is – I have FOUR stars on my calendar so
far – WAHOO!)

2) If you enjoy a daily latte on the way to work, assuming 261
working days per year and $3.00 per latte, then you are spending $783
on hot brown sugar milk/water with caffeine!

3) If you decide there isn't enough time to make lunch in the
morning and you stop into your favorite drive through for a $5.00
special, then you are spending $1305 per year on instant lunches.

4) If you decide to go out for supper once per week and you have
a family of four and it costs $40.00 per week, then you are spending
$2080 per year on easy suppers.

5) If you rent movies, buy chips and soda for family movie night
once per week it will cost nearly $520 per year.

6) If you smoke one pack per day…. YIKES… you are paying…. too
much!

Hee hee, I think you get the idea. Now, before you think that I am
telling you to stop doing all of the above, that's not the case. What
I want you to see is simply the power of one or two dollars. They add
up. They are your financial future!

The next time you are about to spend one or two (or five or ten)
dollars, ask yourself if there is another way – something that will
cost less or even nothing.

Remember the Three Rules of NOT Buying…
1) DO instead of BUY… decide if the solution can be achieved by
DOing something instead of BUYing something.

2) SHOP at home FIRST… do you already have the thing or food at
home?

3) PROCRASTINATE… is this a purchase that can wait so you can
decide if it is something you really need or want. (This is the one
that is going to save you the most money!)

Do not underestimate the power of one and two!

DO away with debt in 2008!