I spent some time yesterday reading about a concept called "Tactical Saving". I am intrigued. The premise is that the best kind of investing is saving. No matter how shrewd of an investor you are if you cannot master the art of saving, you will have a very difficult time reaching your financial goals. The author I was reading suggested that a person should carry a 3 X 5 card around at all times that he would keep a list of spending and savings events. Basically a portable accounting ledger that tracks your credits and debits. This tool serves as a constant reminder of exactly what is going on in your financial life. I think this same kind of thing could be accomplished with a smart phone or PDA just as effectively. Also, sites like Mint.com help to keep users keenly aware of where their money is coming from and where it is going on a timely basis.
This story reminds me of Warren Buffett who is famous for being a chronic saver/penny pincher. He even carries coupons in his wallet for fast food restaurants. I think this is a bit excessive. However, the idea holds true. If you can control your desire to spend money, you will end up with more financial security than someone who cannot.
We are just finishing up with the busiest shopping weekend of the year. Reports are suggesting the over 1 billion dollars was spend on Cyber Monday alone. Imagine for a minute how much money could be made if that money was invested for the next 10 years. The trick is realizing that fifty bucks here and 75 there adds up to hundreds or thousands a month. So, start saving like Warren Buffett and who knows maybe you will end up with a billion by the time you are in your seventies. Hopefully you won't have to eat discounted cheeseburgers until then!