Small Choices =
More Money and Positive Cash Flow!

by Heather Weller
(Spokane, Washington)

My grandma, who recently turned 95, is famous in our family for saying “a penny saved is a penny earned.”

She has lived her amazing life by the definition of good old fashioned frugality – the kind that was so ‘out’ during the eighties and nineties and now in the midst of a Great Recession – coming back into fashion.

My Grandmother, and so many others who struggled during the Great Depression, is a testament to the sound economic advice of her generation. Because of her financial choices, she lives quite comfortably in her Golden Years in an upscale retirement community.

For nearly 40 years I blankly responded to my grandma’s financial advice with a hollow, “uh-huh.”

“Save for a rainy day.” “Any work is honorable work.” “Pay off your mortgage.” “Don’t use credit cards.” “Always live beneath your means.”

Grandma was right! She now has my full attention as I work hard to change my old ways and achieve financial freedom.

I have been the classic problem of the American consumer. I have turned up my nose at gently used items. I love to shop and have used retail for therapy. I have been the first to discard a perfectly good item – almost new – for just slightly improved newer version.

My priority for grocery shopping has been convenience. I didn’t think beyond immediate gratification.

With a two-income household, I wasn’t overly concerned about debt. Although I still have a long ways to go (I love shoes), I am taking steps solidly in the right direction.

The free financial tools provided in 10 Steps to Conquer Debt have been extremely helpful as I work to get my financial house in order. I’d say the biggest step I’ve taken so far is being mindful to cash flow.

Credit cards are a thing of the past at our house. After paying off every credit account, my husband and I vowed to only buy what we can pay for with cash.

It is amazing how seemingly insignificant choices make such a great impact on cash flow.

For example, in the past if my gas tank were empty, I would always choose to fill it up instead of asking for an amount I could pay cash for on the spot.

I can't believe how easy it was for me to just whip out my card and ask for a fill without even thinking that this choice would put me cash flow negative.

It was so easy to mindlessly make many of these types of choices and find myself several hundred dollars over my checking account balance each and every month.

This is exactly how the cycle begins. You start the next pay period already behind because you spent more than you had during the prior pay period. The combination of these mindless choices snowball into significant debt.

And debt is like losing weight. It is so easy to make a lot of small choices to eat whatever tastes good at the time, then, all of a sudden, you notice your jeans are tight.

And it is ALWAYS harder to lose the weight than it was gain it, right?

I think the same is true about credit. It is ALWAYS easier to spend it than it is to pay it back. Grandma was right. “Don’t use credit cards.”

I am grateful to have broken the cycle of negative cash flow by making small choices every day based on my budget and checking account balance. Richard's free Daily Cash Flow Statement tool provides an easy way for me to keep my cash flow in the green!

It is amazing how making a small choice to put off a purchase by a couple of days or weeks, or to make a smaller purchase to get you by until the next paycheck, will positively impact your cash flow.

I am now committed to a monthly budget and to be honest, it's not always easy, but the feeling of accomplishment is terrific - and the best part is that I'm not having to deal with the guilt of poor financial choices.