Daily decisions can make a huge impact!

November 1st, 2008

My wife and I are going through Dave Ramsey’s Financial Peace University (FPU) right now.  It’s a 13 week course held weekly on Thursday nights 7-9 pm at a church in our home town.  We went to the first class on October 30.  We both enjoyed it and thought we would share the process.  We had already read his book The Total Money Makeover about 6 weeks ago.

It all started with me catching the last 5 minutes of Dave’s show on Fox Business News.  At the end of his show he reads emails from viewers.  On this particular show people were writing in saying how FPU and The Total Money Makeover had changed their lives.  They raved about how they had wiped out their debt in 18-24 months.  I’m not talking about $5000 in debt either.  I’m talking $80-$100k.  Needless to say I was intrigued by this and thought “I need to read his book”.  A couple of weeks later we were at Barnes & Noble and I saw the book for 20% off plus we have a 10% off membership card so I got it dirt cheap.  It sat on my desk for 2 weeks before I started reading it.  Once I did I finished it in 3 days.  Lots of common sense stuff but reading it helped me to realize I do not know everything about saving and budgeting.  It opened my eyes to how much money we blow every month.  We changed everything IMMEDIATELY.  Get the book if you want to change your life.

This is the one thing from the first lesson that I’d like to share

Daily decisions can make a HUGE impact!
Expense Cost per day Cost per month If invested at 12% from age 16-76
Cigarettes $3 $90 $11,622,000
Gourmet Coffee $5 $150 $19,371,943
Lunch (5 days/week) $8 $160 $20,663,319

That’s $51,657,262 by cutting out ciggys, coffees and fast food lunches. It shows you the power of compounding interest and investing a little bit every month. Get to work.

 

That’s $51,657,262 by cutting out ciggys, coffees and fast food lunches. It shows you the power of compounding interest and investing a little bit every month. Get to work.

Categories: Chaos |

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