Small Amounts Add Up - Keeping Going!!

[james.hendrickson]

This posting is for all the lurkers and casual passers by on the forums.

If all you have is small amounts of money to work with, DON'T FEEL DISCOURAGED. Small amounts of money add up if you're consistent about managing it over time.

To share a personal example, a couple of years back, I saw that the Ford Motor Company paid a pretty good dividend - 60 cents a share - and was trading at around 10 dollars a share.

So, I started putting all my extra money into buying shares of the stock. At first it wasn't much at all. It was just $5 from doing surveys here, or $10 from selling my spare bandwidth or $15 from something I sold on Facebook Marketplace. But I just consistently plowed the money back into shares of Ford and reinvested the dividends. It took me about a year and a half, but I got a the number of shares I owned from 0 to about 350 today.

Here is an example of the transaction record:

So the bottom line here is that you can accomplish a lot with small amounts of money if you're consistent and motivated.

This works with investing as well as for any other finance goal - like putting money into a savings account, paying off your credit card or your other debts.

So, don't get discouraged, you can do it. All you need is some motivation and a goal you believe in.

[kork13]

I'll just echo this with another example. When each of our kids were born, I opened a UTMA investment account for them. After the required $3k startup balance & the occasional infusion of cash from gifts or otherwise, most of what's gone in there has only been the $30/mo that I've added to each of their accounts. My 10y/o son's account now has $17k in it. Our 8y/o is on his heels with $14k. Even our 4y/o has $8k to her name. Again, most of that is just from small, consistent monthly deposits.

Slow, steady savings into reasonable investments will grow & grow like you wouldn't believe.

[Fishindude77]

Good thread !
Time is something most of us are gifted with and using it effectively from a young age and consistently will get you further ahead in most cases than any get rich quick scheme that comes down the pike.
Start working young and earning income and keep working.
Start putting money away early and do it consistently through your entire working career.
Acquire and hold onto assets that appreciate over time. Could be real estate, collectables, precious metals or whatever you are knowledgeable in.

I feel like many young folks really put off growing up and it's a big part of why they are behind the eight ball in their late 30's complaining about not being able to afford a house or still living with their folks. Need to start kids working for $$ young 10-12 years old and get them handling money, saving, have a bank account, buying their own stuff, etc. Going to high school and college shouldn't be an excuse to quit working either, have a part time job all the way through and a full time job every summer. These younger years are when you are in the best health, can do with less sleep and get a whole lot of stuff done while still having some time for fun. Don't waste those early years.

[ua_guy]

It wouldn't be a SA thread without the puritans proposing how people should live their lives, dispensing parenting advice for kids which aren't theirs, and unabashedly supporting child labor, why, I don't really know. If a kid wants to celebrate their 10th birthday they'd better get a job and save for that cake, dangit!

Little actions do matter. Declutter just one space...doesn't have to be the whole house. Put some money away...doesn't need to be a mint. Do it regularly to help support goals, but if it doesn't happen on a perfect schedule, don't get discouraged, right? If anyone has arrived here to become better about saving money, do it how it suits you. The competition is only with yourself, and for the things you need, and the goals you want to achieve.

[myrdale]

It wouldn't be a SA thread without the puritans proposing how people should live their lives, dispensing parenting advice for kids which aren't theirs, and unabashedly supporting child labor

I was in a field hoeing tobacco at 13 years old for $2 per hour. At 48 hours a week I still had time for birthday cake, hunting and fishing trips, and bought my own N64.

I might earn more in an hour now, than I did in an entire week back then, but I for one can say it was a great experience. I'd gladly do it again.

[myrdale]

When each of our kids were born, I opened a UTMA investment account for them.

My mother started 529 plans for both my niece and nephew when they were born. Assuming they stay in state, it's looking like college will be close to being paid for when they get their.

[kork13]

My mother started 529 plans for both my niece and nephew when they were born. Assuming they stay in state, it's looking like college will be close to being paid for when they get their.

Yep, we did that too for our kids. Those get more added to them, between $140-$200/mo (age based, accelerating as they get older) ... But the same story applies -- save early & often, the money accumulates & grows over time & makes alot of things possible. I just know that my college education was 100% paid for / free to me, and it made a huge difference compared to my peers who graduated with 5-6 digit student loan debts. So while we have the means, we're doing what we can to provide that opportunity to our kids.

[Fishindude77]

I was in a field hoeing tobacco at 13 years old for $2 per hour. At 48 hours a week I still had time for birthday cake, hunting and fishing trips, and bought my own N64.

I might earn more in an hour now, than I did in an entire week back then, but I for one can say it was a great experience. I'd gladly do it again.

Yep, similar experience here. Picked a lot of rocks, cleaned up construction jobsites, painted, cut grass, etc., etc.
Had cash when all my buddies were broke and bought my own pickup truck while still in high school.
Dad would never give us money, but he would pay us to do all the work we could handle.

[ua_guy]

I was quite the entrepreneur when I was young. Mowing lawns/yardwork, washing cars, watching homes and people's pets while they were on vacation, etc. I ran afoul with the local mail carrier one day when I decided the business needed to be expanded. I designed a flyer on the computer and printed off 100 copies and stuck them in mailboxes in nearby neighborhoods. The mail carrier was a little stunned to find the man behind the operation was only 11! He told my dad I could get in a lot of trouble if I did it again without paying postage or getting a permit. And that's when I learned I could staple flyers to mailbox huts not owned by USPS.

That's how I learned saving bit by bit could really add up. I definitely had the nicest and most awesome mountain bike as something to show for my efforts, including a pile of cash in the bank which almost no other kid had.

The point is...it was all voluntary. I didn't need the money, I wanted the money. There was still plenty of time to be a kid, and studies always came first. My parents made sure of it.

I didn't need to work 40+ hours per week back then, and still don't. Time spent at a job every week doesn't produce work ethic, or grit. You either bring it, or don't. Needless to say, I don't subscribe to the school of hard knocks or the idea that we need to put children in labor camps to teach them lessons. Good financial habits are learned, and there are many different ways to teach them.

[james.hendrickson]

This is the best thread ever.

[riverwed070707]

I was quite the entrepreneur when I was young. Mowing lawns/yardwork, washing cars, watching homes and people's pets while they were on vacation, etc. I ran afoul with the local mail carrier one day when I decided the business needed to be expanded. I designed a flyer on the computer and printed off 100 copies and stuck them in mailboxes in nearby neighborhoods. The mail carrier was a little stunned to find the man behind the operation was only 11! He told my dad I could get in a lot of trouble if I did it again without paying postage or getting a permit. And that's when I learned I could staple flyers to mailbox huts not owned by USPS.

That's how I learned saving bit by bit could really add up. I definitely had the nicest and most awesome mountain bike as something to show for my efforts, including a pile of cash in the bank which almost no other kid had.

The point is...it was all voluntary. I didn't need the money, I wanted the money. There was still plenty of time to be a kid, and studies always came first. My parents made sure of it.

I didn't need to work 40+ hours per week back then, and still don't. Time spent at a job every week doesn't produce work ethic, or grit. You either bring it, or don't. Needless to say, I don't subscribe to the school of hard knocks or the idea that we need to put children in labor camps to teach them lessons. Good financial habits are learned, and there are many different ways to teach them.

There is so much to be said for the intrinsic motivation of the individual kid and what else they're involved in. During volleyball season, having a job is 0% realistic for my teen. They practice every day, often travel 1-2 hours away for game days, and she takes AP classes that assign hours of homework that needs done in between.

I sometimes struggle with finding a balance between giving our kid what we didn't have, while keeping boundaries on things we felt helped us on our path. When I was 16, I was paying my own phone bill, car insurance, bought my first car on my own and had to provide all my own spending money. We cover kiddos phone and insurance expenses and let her earnings be for the fun things she wants to do while encouraging always putting some away for savings. OTOH, my parents didn't contribute toward college and as a result, I picked a reasonably priced school, only took loans my first 2 years and paid the rest out of pocket because I was very aware of what it was costing me and the long term total cost of the loans. I was super proud of graduating with only $12k in debt and paying off my loans by my 30th birthday. We don't plan to contribute to DD's college expense, but may gift her money now and then to help out when we can and when it feels earned. I feel strongly kids should have a financial stake in their education so they consider their choices more carefully.

Example: Last year DDs aquarium science class announced they were taking a 2 week trip to Fiji to work with a prestigious research facility. The cost was more reasonable than I expected (around $3k including airfare). Since she's interested in studying marine bio in college, she was dead set on taking this trip and pleaded to me that it was the most important thing she would do in high school to prepare her for a career in this field. I considered her request and eventually told her I'd pay for half if she kicked in the other half. There were fundraising opportunities + she had the amount needed in savings. Within a day, she decided it wasn't that important to her and she'd rather save her money for something else. I'm so glad I didn't fork over the cash for something that so quickly was deprioritized.

[Randomsaver]

Now am curious what your DD is saving her money for.

[Drake3287]

Yep, small amounts over time pays huge dividends, doesn't matter if it's stocks or simply putting a little extra cash aside each month. Funny what 30 odd years will do to these small amounts. Like others here I'm sure, I'm the perfect example of someone with just an "average" public service job which not only helped me pay cash for my three kids college education but also a large retirement portfolio which most people would be envy of. Best advice to anyone out there, save or invest a little at a time, even if you think it's too small to make a difference. Other than maybe your health, there's no better feeling at retirement than not having financial worries.

[Fishindude77]

Yep, small amounts over time pays huge dividends, doesn't matter if it's stocks or simply putting a little extra cash aside each month. Funny what 30 odd years will do to these small amounts. Like others here I'm sure, I'm the perfect example of someone with just an "average" public service job which not only helped me pay cash for my three kids college education but also a large retirement portfolio which most people would be envy of. Best advice to anyone out there, save or invest a little at a time, even if you think it's too small to make a difference. Other than maybe your health, there's no better feeling at retirement than not having financial worries.

Agree with all.
Back in my grandparents generation and prior they didn't have easy access to the stock market, or all of these investment tools we have today; mutual funds, IRA's, 401k's, etc. About the only options they had were to get a little interest from the bank on their savings or take risks in various businesses or ventures. Some still managed to accumulate some pretty large nest eggs by being frugal and saving.

[riverwed070707]

Now am curious what your DD is saving her money for.

Lol at the time she told me it was in case Eminem went on tour He hasn't in like a decade but released a new album last year so there was speculation he might. He's been her favorite artist for years. I didn't say she was making responsible choices with it, just that its interesting how important some things are until they have a financial stake in it haha