Comments on: The Little Things and the Big Things: Which are More Important?

By: Ms. Frugalicious

Ms. Frugalicious — Sun, 20 Sep 2009 01:27:45 +0000

The problem with saving $4 a day by skipping that latte is that most people don’t put the money away, so they don’t actually end up realizing the savings over a year. Saving money is important, but it takes a long time for $4 a day to add up to much. After reading Loral Langemeier’s newest book, Put More Cash in Your Pocket (thanks to my friend for an advance copy!), I’ve been focusing on ways to earn more money each month, rather than trying to save a few bucks a day. The book tells you how to use the skills you already have to pick up side jobs and earn $500 to $1,000 more each month. I recommend it…it inspired me to ramp up my efforts to find freelance proofreading and tutoring jobs. Check out the book at liveoutloud.com/newcashbook/.

By: Robert

Robert — Fri, 18 Sep 2009 19:00:19 +0000

Big things are important, but they should be affordable. Little things are not important, but if one chooses to indulge, it should be affordable. I found myself being penny wise and pound foolish and it was quite an awakening for me. Good post.

By: Flexo

Flexo — Thu, 17 Sep 2009 01:32:36 +0000

I certainly agree that it’s a matter of priority. And it’s great that we have the luxury of choosing which wants to pursue after our needs are met. Not everyone has that luxury, though.

By: Donna Freedman

Donna Freedman — Thu, 17 Sep 2009 00:58:29 +0000

May I add another thought? It’s the value of rethinking these big-ticket items entirely. Recently my daughter and her husband needed to move to a dry climate for health reasons. Because they’re broke (one’s on disability, the other unemployed), I thought that I would give them my old car and buy a beater to use for my little bit of driving.

Then I thought, “Why do I need a car at all?” After some more thought, I decided that I really *didn’t* need one, because of my particular circumstances. (See the MSN Smart Spending post.) Now I don’t have to gas up, maintain or insure a vehicle. What other must-haves in our lives should be rethought? Do you *need* a four-bedroom house just because you have two kids? Do you *have* to be a two-car family? Will your children make out just as well with a state vs. private university (and graduate with far less debt)? Is it necessary to eat meat at every meal (or at all)? Etc. etc.

Examine the bigger-ticket items, as Flexo suggests — and you may find that not only can you cut them back, you can cut them out.

By: Adam

Adam — Wed, 16 Sep 2009 19:15:35 +0000

Agree completely with your sentiments here. Nothing wrong with cutting back on expensive “treats” if you feel they are part of an overall spending problem, but it’s the overall picture that counts.

On a tangent, I’ve never understood the extreme frugality crowd, mostly because it seems like so much work to live in this frugal way. For me I’d rather have my brain working on how to improve my earning situation than figuring out how to live on less all the time. You can do both, of course, but I believe the constant focus on saving can take away from the focus on earning.

By: Neal@wealthpilgrim

Neal@wealthpilgrim — Wed, 16 Sep 2009 16:00:07 +0000

First, this is very well written, thought-provoking piece.

The words that jumps out at me are “ACCOUNTABILITY PARTNER”.

It’s very difficult to find balance by ourselves. I believe that for some, making good (small) decisions is like working out. We get stronger and learn to make better larger decisions. Yet, I can’t ignore the truth in what Jess is saying – I’ve read the study and I’ve seen this kind of thing first hand.

That’s why the accountability partner is the only tool I can think of that helps me get balance. We need to run our ideas by someone and be willing to take direction.

By: David@DINKS Finance

David@DINKS Finance — Wed, 16 Sep 2009 04:39:25 +0000

Big purchases and spending can obviously have a much bigger impact on your own personal bottom line. People who used to get Starbucks every day and then cut it down to only a couple days a week have the right idea, but if they only concentrate on these small purchases and blow off saving money on the big stuff, they need a new strategy. Living in a smaller/cheaper apartment that saves you an extra $200/month will probably save you more than your coffee cutout. But you could do both and save even more! Nothing wrong with that, either.

By: Jess

Jess — Wed, 16 Sep 2009 03:38:49 +0000

@Save Money Hound,
Actually, science would indicate that the daily latte resistance is the opposite of a litmus test. In fact, exercising your will power by not indulging in lattes may make you less able to resist the large purchases later. Here’s the study: http://www.psychologytoday.com/blog/dont-delay/200902/self-regulation-failure-part-2-willpower-is-muscle

There’s only so much will power to go around!

But I would tend to agree with Kelly – it’s not either/or, it’s finding a balance between the two. There are little places we can easily save money, but the big ones matter as well.

By: Kelly

Kelly — Wed, 16 Sep 2009 03:14:18 +0000

The problem is with taking an either/or approach in my opinion.
Maybe those of us with high incomes, or no dependents can choose one or the other, but for most “typical” (whatever that means!) people you have to do both or you can’t even stay afloat.

Mainly because most of us have debt of one form or another.

In our case we made the right decision to buy a bigger house for our family, but the payments while within that 30% number are still big. We cut back on little things to help pay for the house which is important to us.

Or as my Dad (a CPA) says: “You can have it all, just not at the same time.” :)

By: KC

KC — Wed, 16 Sep 2009 02:15:35 +0000

I’m convinced its the big things. I choose to drive my 9 year old car cause its paid for (and its still in good shape). Not only do I save from having a car payment or paying cash for a new car, but I save on insurance (the older the car the cheaper) and I save on taxes (we have a property tax based on the value of your car). I really don’t pay that much on maintenance. I’ve had one $200 oil leak in the 9 years I’ve owned the car. Everything else was normal maintenance I’d have to do on any car.

I also keep my housing costs in check. I’ve had two houses – one very small that we stayed in way past the time we could afford something bigger. Then when we did buy the bigger house we made sure we had ample down payment and could keep our costs well below the 30% recommended. By saving thousands on these bigger things I’m able to splurge on the smaller things. I have a frozen yogurt weakness that I feed anytime I want – without guilt.

By: My Journey

My Journey — Tue, 15 Sep 2009 23:46:01 +0000

Couldn’t agree with you more! I have a buddy who bitches and moans about cig prices and that he is quitting because he needs to save money (lets ignore the health implications) YET and I am not joking he is in the midst of signing a lease for a new C300 Mercedes! lol

I am sure everyone has a similar story

By: Save Money Hound

Save Money Hound — Tue, 15 Sep 2009 23:43:36 +0000

The daily latte resistance might be the litmus test of one’s ability to avoid splurging on bigger items! I guess it all goes back to what you value and how willing you are to outlay that money. Some people can’t do without their daily latte. Others just have to splurge on an expensive car even if they don’t really need it just because.