The third and final cardinal rule before we get started on our journey towards financial freedom is the concept of incremental growth. This is the act of learning to value small acts that eventually add up. This is the mindset that  keeps you focused on the big picture, and starting to realize how making incremental changes can really pay out in the long run.

Two examples of this from my own life. Upon starting my new job last year, I noticed that most of my colleagues went out to lunch almost everyday. I partook in this new “custom” for a couple of days until I realized that I was spending $6-$10 everyday on lunch. Now that’s certainly not breaking my bank, most people can afford that. I got to thinking though, my $6-$10 everyday, adds up. Lets say on average you spend $8 on lunch. That’s not too farfetched, a meal at most local establishments would set you back that much. $8 a day, 5 days a week, let’s say 50 weeks a year. That’s $2,000 right there. $2,000 could really go a long way at paying down student loans or saving up for that big European vacation you’ve been planning. Now that’s not to say that you should become the person that packs their lunch everyday and eats by themselves. The rule of incremental growth states that a little here, a little there, can really add up. Perhaps you could cut back by instead of eating out everyday, to just eating out once or twice a week.

Another great example is parking. My office is downtown and as such, parking is limited. We do have a parking garage attached to the building, which is quite nice and convenient. The only downside is that it costs $5 each day. Most people would accept that as just a cost of doing business. You gotta have a job, and to have a job, you need somewhere to park your car. $1,250 a year right there. I decided to branch out and found that if I get in a little earlier (7:45 am, instead of 8 am), I can most often find free street parking. Sure it’s a 5 minute walk, but to save $5? I sure think that’s a good deal!

By making small changes in my daily lifestyle, I’m able to save up for bigger things. I really enjoying traveling, and because of small savings that add up, I can afford to take more weekend trips and really live it up. By focusing and adopting this mindset, you’ll find that you will start to have a little more each month left in the bank. Never accept the status quo, always be looking for ways to improve.

Start looking around your daily life for little things that you could cut out. Perhaps its lunch, or parking, or that $4 cup of coffee at Starbucks. Just like making a snowman, you gotta start rolling the snowball and eventually it’ll get bigger and bigger.