Monday, July 06, 2015

Jim Parker's Coffee Break

Each week Jim shares a few interesting links from the web and is happy for them to be posted here.
Before decimal currency, many of us remember our grandparents saying that if you take care of the pennies, the pounds will take care of themselves. These days we have dollars and cents, but the lesson is still the same.

Basically, the lesson is that little things count in building wealth. On their own, the details may seem unimportant, but paying attention to them pays off in the long term.

This week’s Coffee Break looks at ways of spending less and saving more. While we don’t necessarily endorse everything in these links, they may prove handy as conversation starters.

Do you ever look at your credit card statement and find yourself telling stories about your impulse purchases to make yourself feel better? It’s natural to want to rationalise our expenditure. But Carl Richards says we should focus on the numbers themselves as they don’t lie.

Saving money begins with understanding what you can and can’t control. Just sticking to essential purchases may work, but it’s also important you don’t put yourself in a straitjacket. In any case, it’s sometimes the little things that have the biggest impact.

Small changes in your spending patterns can make a big difference to your savings pile. It may be as simple as giving up buying coffee each day or locking up your credit card for a month. Check out this useful ready reckoner from the Australian Securities and Investment Commission.