When it Comes to Your Money, the Little Things Really Count

As a Financial Advisor I talk to my clients about the importance of the "big picture" when making money decisions. I also emphasize the "little picture." Often, it is the little things that count most when it comes to your family budget.

It is important to pay with the credit card that gives you cash back. I shop for groceries and buy gas at Sam's Club and, until last year, I would say, "Put it on the Sam's card." Then I realized I get cash back with my Master Card. Now I pay with that card and save money on every purchase.

It is a wise move to pay bills online. I pay most of my bills online and each online payment saves me 45 cents (well, actually less because I stocked up on forever stamps last year). This may not seem like much, but over time the free online service puts extra money in your pocket.

Dress according to the weather. Last month I visited a friend on a cold winter day and he came to the door in a tee shirt, because the house was what I consider uncomfortably warm. My advice is to wear a shirt and sweater, and shop second hand stores for things you wear around the house. I shut off the heat to unused rooms in my house. The master bathroom is very cold in winter so I switch to the guest bathroom in winter months.

Change your routine. Much of what we do is part of a "routine." If we can adjust what is routine so that it makes more money sense, then our family budget benefits.

There are new 401(k) disclosure rules. A new law, which comes into effect later this year, means 401(k) providers must list all the fees. This is important because 0.5% more in annual fees can cut the value of a 401(k) by 10% at retirement. (What the New 401(k) Rules Mean for You, 8 Feb 2012, Sharon Epperson, CNBC.)

A small percentage when it comes to your money can make a big difference. I will rebalance my investment portfolio in March 2012. Part of my plan is to reduce stock holdings from 48% to 46%. Two percent does not seem like much but it is making my portfolio safer as I get older. Consider increasing your 401(k) contribution by 1%. This move will make a big difference in the long run. Years ago when I first started investing I would buy a stock directly from the company though a Dividend Reinvestment Plan. I started with small $25 monthly purchases.

Consider growing things instead of buying them. I brought my potted tomato plant indoors in October, and it still is producing tomatoes. I haven't purchased tomatoes at a store since early summer last year.

You can change your routine a little and save a lot. I would like to hear from readers how little things have saved them tons of money.