Being a thrifty Texan I know that dimes quickly turn into dollars and tens turn into hundreds. Now, you and I both know that nobody is going to get rich by saving $20 or even $100 a month. BUT if you keep compounding those small savings into slightly larger investments you can start to snowball your money faster than you think! This specific example will not apply to all of you, but the thought behind it and the process itself can be followed by anyone.
WHAT'S THE "INVESTMENT"!?
So, the $18 “investment”? A set of Wahl hair clippers! I know you think this is not an “investment” per se, but stick with me here and I’ll break down the math on that ridiculous return. Being a guy who keeps my hair cut pretty short (who admittedly has been slowly but surely been losing my hair since around my 18th birthday) and frequently wears hats anyways, I realized I was throwing money away by paying someone else to cut my hair. I decided I’d rather invest that little chunk of change!
THE MATH
A basic haircut was costing me about $20 each time I went and I typically need a trim about every three weeks. This boils down to ~ 17 haircuts per year at $20 a piece for a total of $340 per year. My “investment” in those clippers was $16.99 + tax for a total of $18.39. You can easily see that just ONE haircut has already covered the cost of the clippers. Now, that $340/year X 4 years = $1,360 for a total ROI of 7,295%. This doesn’t even include the additional return on the money once I roll this savings into my next investment strategies. Good luck getting that kind of return in the stock market!
TIME TO COMPOUND
As I already said, we aren’t getting rich off of this extra few hundred dollars per year alone. Instead, I compound these small savings amounts everywhere I possibly can, roll them in to slightly larger investments, and watch the money tree grow! Follow along and I’ll show you some of my favorite ways to grow money.