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Look for Financial Big Wins

My homeowner’s policy has steadily increased in cost over the last decade. I never felt it was enough to make me look for another company. I thought it was the typical price rise you see over time in a product due to inflation.

Then, a couple of weeks ago, my homeowner’s bill for the next year arrived: the cost had increased by $5,000.

$5,000!

My vehicle insurance was also with this company and it was increased by $1,000.

This ignited a fire in me to search for a new provider of insurance.

Last week, I spent some time shopping around for new car and homeowners insurance. I thought it would take all day for me to shop around and find new insurance. My effort could save me $1,000.

In less than two hours, I was able to find a better insurance company.

My insurance cost was reduced by $7,000.

I am now $7,000 richer after two hours of chatting on the phone and tapping my laptop. What a great ROI!

Ramit Sethi’s book I Will Teach you to be Rich, which he was a guest on the AoM podcast, reminded me that my experience in saving a lot of money on insurance brought back a key concept I learned from him.

Ramit’s mantra for personal finance is to focus on “big wins” in terms of money. Ramit says that too many people are focused on the minutiae in personal finance. They spend their money to get rich. They try to cut a few dollars from their budget.

“I’m giving up my daily coffee!”

“I’m going to drive 20 minutes to the other side of town to save $.20 per gallon on gasoline.”

I shouldn’t spend money on an appetizer.

When penny-pinching becomes extreme, it can become miserly. It’s not very effective either: Focusing on small ways to cut costs can consume a lot time without achieving much in terms of financial progress.

It’s okay to chase these “little victories,” but people may get so focused on them that they miss the chance to achieve financial “big winners.”

What are the financial big winners?

These are high-ROI investments: you can save or earn thousands of dollars with little effort.

Two hours of effort can save you $7,000 per year in insurance costs? This is a big financial win.

Negotiating an increase of $20,000? Big win.

Start an automatic investment program that can generate tens or thousands of dollars of interest. Big win.

Ramit said to me during our interview that he wanted people to ask $3,000 or $30,000.

Start thinking about the $3,000 question that you should ask and how you can make a huge financial gain.

Listen to Ramit Sethi’s interview for more information on how you can build your own wealth:

The Art of Manliness published the article Look for financial big wins first.

Did you miss our previous article…
https://mansbrand.com/what-to-do-if-youre-skinny-fat/

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