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He puts it so simply.  Beware of the little expenses… they will sink a BIG ship.

THIS IS SO TRUE!

Benjamin Franklin was such a smart guy!  I went to school K-6 at Benjamin Franklin Elementary school… maybe that’s why I like him so much.

Beware of little expenses example…

Once upon a time… early early in marriage… Spouse A worked traveling on the road.  “A” would always stop and buy $1.25 here or $76 here for drinks and lunch in the hot Arizona sun.  Spouse B, who is a “Penny Pincher”… got sick of seeing ALL these little expenses and started tracking them…

Over 3 months… Spouse B added up all the “little expenses” for each month.  These “little expenses” each month averaged out to $40.  Now that might not seem like much… but $40 times 12 months is $480!  That’s an ENTIRE car payment, or TWO car payments!

Think if those “little expenses” that may be more like $4 a day, instead of $1-2… That adds up to $1440 a YEAR!  What do you think you could use $1440 for?

How to manage little expenses

Just because you are spending a few buck here or there, doesn’t mean they add up.  Take honest look at ALL the “little expenses” you are spending here or there.  Are you buying coffee?  A soda?  Candy?  A little car for your kids?  Dollar store trinkets (guilty!)?

1. Make a list of every little expense

Writing it down helps you to be more aware of what you are doing, and acknowledge it.

2. Make a list if your financial goals

Some examples are, pay off your car, pay off credit card, save for a baby.  Keep this list of financial goals with you in your wallet.  Place it by your credit card, or where your cash is.  It’s best to place it  by the way you usually pay for your “little expense”

3.  Don’t do it!

Now, you are prepare with your ultimate opps list of “little expenses”  You have your list of financial goals.  Every time you go to buy one of your “little expenses”, STOP!  Look at your goals, and DON’T DO IT!  See how much money you save in a month by NOT buying that item.  Put all that extra money towards your financial goal.

In conclusion, Benjamin Franklin might be old… but he was defiantly wise.

As always, if you love what you read or have found it helpful, please share or comment below.

Thanks for reading!

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