Today I read a post from a personal finance expert, Ramit Sethi. Ramit said, “This bank reduced its interest rate from 1.05% to .80%. Should you; freak out and switch banks, or ignore? On a $10,000 balance, the difference is $2 /month. ”This isn’t worth spending even a second on. Focus on Big Wins in life. Ask $30,000 questions, not $3 questions.”
At first I was like, “Yeah that’s awesome!” Then I thought, “Oh wait, small wins are so important though.” As I mulled this over I realized, the correct small wins are important. It isn’t that we should get bogged down in the minutia of tiny insignificant “wins.” No, we need to make sure the small wins we are getting, are moving us forward toward the big wins.
In other words, we are getting the small wins like; setting up the proper accounts, setting up our 401(k), Roth IRA, investing, saving, spending wisely, etc. those are small wins, not obsessing about .25% reduction in an account.
Small wins are important, if they are the correct things that move us toward the bigger win. Every big win, or big goal, consists of doing a lot of little things correctly. Ramit would NEVER suggest wasting tremendous amounts of time doing nothing but abstract thinking about a $30,000 win, only to look up 10 years later and you’ve done NOTHING.
Write down your big goal/win, and figure out the small steps/wins you need to take to get there.
jareddoran 