Following the money trail is something which you should do in your own personal life as it’s perhaps the single best way to handle your finances (after spending wisely of course). Studying complex systems (or perhaps not-so-complex in your case) is a freely available tool you can use to detect hidden patterns you can then use to uncover some big savings.
So Where to Start?
Admittedly, following the money trail physically while you’re out going about your daily financial business can be extremely challenging. The next best thing to do, alongside keeping records of all your spending, is to make live projections of how the money you spend or plan to spend flows. For example if you suspect that your retirement fund contributions could yield bigger returns in future or save you a few pennies right now, and you want to weigh up your designated pension / provident fund service provider options, you can use a dedicated resource on annuities to compare live quotes. This is a good example of following the money trail well into the future and if you by any chance find that you have a safe option of contributing less to your retirement fund while still getting the future value you need, that can make a world of difference to your current financial situation. It’s as simple as say knowing that your retirement fund will be more than adequate to sustain your standard of living by the time you retire and then adjusting how much you currently contribute to free up some funds you can use right now.
An Everyday Thing
Not all retirement funds offer such flexibility, so you might not be able to negotiate your contribution or any other related terms. The message I’m trying to convey here is that if you pay close attention to that process when your money is exchanged for whatever value you’re buying, you will uncover some savings which when put together and repeated, can add up to some huge savings. Just a basic example, in parting, is something which perhaps everybody in your neighbourhood spends money on, bread. What if you and all your neighbours put all your bread-money together and then ordered the bread daily, directly from the bakery? The lot of you would save big and that is but just one simple example.
Follow the money and the big savings will come!