Staying The Course More Important Than Going For The Home Run
When it comes to your money, one of the hardest things can be to just stay the course. Doing the little things right for a prolonged period of time can be difficult. Some, including myself at times, tend to neglect the day-to-day pursuit of financial responsibility while keeping an eye on a “home run”. Let me use my own example to illustrate.
I have lots of aspects of my monthly financial pursuit. Obviously, all the obligations, bills, mortgage, etc. need to be taken care of. Then, I have a number of automatic investments I make. I put money into general savings, I put money into a few DRIP stocks, and I put money into some various “savings buckets” to be used on various items like house maintenance, car maintenance, vacation fund, etc. Additionally, if I have some money left over, I might allocate that towards some physical silver or something of the sort.
It’s very tempting and very easy to get lax on my spending for the month and over spend to where it throws off the above plan for the month. One of the reasons I might get more lax on the monthly objective is because I start getting the idea that one of my ventures might be getting big and might pay off big down the road, therefore, why stress over the little things?
The reality is that who knows if I’ll land a specific deal or sell a specific website in the near future or down the road. It’s more important to stay consistent on the monthly objectives.
Compounding interest is the most powerful force in finance (besides Ben Bernanke of course). By putting money every month into a number of investments or savings areas, you are setting yourself up for massive returns down the road. This should be the focus no matter how great or how bad your career or business investments are doing.
What do you do every month in terms of your finances?