Want big growth in your financial life? It’s the small actions that lead to big growth.
With your financial life, it is often the seemingly small habits and moments that if repeated over your lifetime can grow and have a significant impact.
Here is one small ‘mustard seed’ tiny action that can have a big impact: spend less than you make.
To get over money overwhelm, most people think the grand cure-all solution is increasing your income. A pay raise can have an impact- see how Jordan earned an extra $5,000-$10,000 a year, or how Brendan paid off his car and credit card within six months of getting a side income. But, no matter what income level you are currently at, the key is to spend less than you make.
Don’t believe me that making more money isn’t always the solution? The Consumerist reported that 1 in 3 lottery jackpot winners are in financial trouble or bankruptcy within five years and according to Sports Illustrated, 78% of former NFL players are bankrupt or financially stressed within two years of retirement.
To experience mustard seed growth continually spend less than you make over your lifetime and save money.
From teaching Best Money Class Ever, I have realized a very mainstream habit with our generation is temporarily saving money. Almost like a game of ping pong, I continually see people with great intentions transfer money to a savings account (with no specific purpose for that money) only to then weeks later transfer it back and spend it on XYZ impulse buy.
To spend less than you make (for real) it’s got to be a month to month and a continual thing for life.
David Chilton, the best-selling author of The Wealthy Barber, illustrated this mustard seed growth through a fictitious barber who continually saved 10% of his income over his lifetime and retired a millionaire.
He writes, “By saving ten percent of your pay now, you virtually guarantee yourself financial freedom later in life… so start now, and don’t stop.”