Many of us have more than $5 squirreled away somewhere. So why start with just $5? I’m so glad I didn’t and here’s why ….
Have you heard of paper trading stocks? It’s where you pretend to buy and sell individual stocks and you track your progress. It’s supposed to let you test your ideas before you start using real dollars. People will tell you that paper trading is different from actual trading. That’s because when your real money is on the line your emotions get involved.
When I played with the first spreadsheet, it was like paper trading. I was tempted to take savings and just start at a higher level perhaps with a smaller real estate purchase of a tract of land. I would have missed so much. I tracked the growth of my first $5 and quickly realized how sloppy I was with our budget. It was so much fun to just play that I really got into the game looking for savings everywhere I could. If I had started with a large sum of money, I would have missed it. It looks like I was wasting about $1,000 a month. Over a year, that would have been $12,000. I never saw it. I would have guessed that maybe – over a year – I could have saved $200 or so a month.
Starting small also helped me dive into into world of sales. I learned that market conditions change within days*. Everyone has access to the internet and everyone can react to pricing immediately. They do and they should. I’m just glad I learned that when I was growing a smaller sum of money. I bought a small amount and knew it would be a back up for gifts. I haven’t lost any money and learned a lot in the process. This process has taught me that the last thing I want is inventory of physical goods. * I bought a case of RTIC tumblers for about $11 knowing I could easily sell them for $15. Within a week, RTIC dropped their own individual price to match and they started appearing on Amazon. Thankfully, I sold the ones that weren’t designated as gifts and made my money back plus a nice profit.
Starting small showed me the importance of small sums of money. It adds up faster than you’d otherwise think.
Finally anyone can start with $5. All you need is the means to track it and the ability to guard and protect it as it grows.
Today, we get to level up having come in under for the week $52.10 on groceries.
Level Completed: 144 out of 251
Amount Deposited this month: $52.10
Total Balance: $5,813.75
Our Money Game fund has increased .92% so far this month.
$93.95 is needed to reach the next level.