Several years ago, I was listening to a podcast that discussed people’s personal buying habits and how many dollars are frittered away daily that could be used for other purchases. I decided, then and there, that every time I would forego buying a ready-made coffee at the specialty store, that I would, instead, transfer the $3.50-$4.00-$5.00 into a separate savings account. I wanted to see if these small foregone purchases made any real difference.
As the amount in savings increased, I became almost addicted to brewing coffee at home! And then I started finding additional “almost” purchases that I decided against–also putting those monies into my savings account. Within three years, I purchased a very nice, used horse trailer for $5,900-all with monies from that savings account!
I never felt deprived…instead, I felt like I had a choice! My choice was that I preferred that money in savings instead of the temporary enjoyment of the convenience of someone brewing my coffee. I preferred my savings to grow; I had the choice of what to mindfully spend my money on…a truly amazing shift in my life!
Warren Buffett takes his choices and decision-making to the next level. He envisions not only how that savings account is growing from the foregone purchases; he also knows how the interest will compound, annually, and what the value of those monies become over the years. His choice; his option; his decision is whether he’d like to purchase a haircut; or whether he’d prefer to have the money, compounded over the years. As we know–he’s one of the smartest, most tenacious men in America. It’s amazing that he considers a haircut today versus the thousands of dollars, fifty years from now. He certainly is a visionary!
Many business owners feel like they have cut all extraneous purchases from their business; have you? Do you need help reviewing your costs and your expenses? Do you need to start a savings account for every foregone purchase? Do you need help with your decision-making? I’ll show you an easy and inexpensive way to know your true business numbers, so you can make smarter, more strategic business decisions every day–your choice, your decisions!
