What Small Decisions Do You Make


 Last week I announced the formation of The Small Investor virtual book club.  Each month we’ll have an investing or personal finance book to read.  This month we’re reading The Compound Effect by Darren Hardy.  If you would like to join in, grab a copy (you can get one from Amazon here: The Compound Effect).
I wasn’t planning to write again about the book until I finished it and have just started reading; however, I was struck by the premise of the book presented in the first chapter, that it is the little choices we make every day that make a big difference in our lives, but we don’t see the effects of those choices until many months or even years later.  A good example that Hardy uses is that eating just 125 extra calories a day – having a Coke with lunch instead of water – could make you 30 pounds heavier after a period of several months to years.

The Compound Effect

That started me thinking about the whole “Living Wage” movement and how activists are demanding that the minimum wage be set to $15 per hour, as if that would drastically change the lives of those who are perpetually on minimum wage.  Looking at the economics of that proposal, I think a high minimum wage would just cause automation and the loss of a lot of jobs, plus prices would just rise so those who did get to keep their jobs would be in about the same economic place.  The idea of the compound effect, however, got me to wondering: Is there anyone out there who consistently makes good choices who is on minimum wage after many years?  Specifically, please let me know if you are still on minimum wage after two years if you:

  1.  Always show up to work on time, ready to go.
  2. Stuck with a job for several years, rather than always quitting and starting another minimum wage job.
  3. Have a pleasant attitude every day, at least when dealing with customers and coworkers.
  4. Work hard at your job, always trying to get things done and please the customer.
  5. Take advantage of opportunities that come in your working career when they are available.
  6. Seek out additional education to learn new skills, including picking up books from the library or reading articles on the internet to learn skills.
  7. Have finished high school, or at least have gotten a GED.
  8. Look around for other job opportunities regularly.
  9. Volunteer and get involved in things like Habitat for Humanity or Boy Scouts, and maybe one of the clubs like the Lions or the Rotary club.

If that is true for even one person, I’ll sign up for the Living Wage movement today.   If you haven’t and are tired of being at minimum wage, would you be willing to try these things and report to us in a couple of years where you have gotten?

Follow me on Twitter to get news about new articles and find out what I’m investing in. @SmallIvy_SI

Disclaimer: This blog is not meant to give financial planning or tax advice.  It gives general information on investment strategy, picking stocks, and generally managing money to build wealth. It is not a solicitation to buy or sell stocks or any security. Financial planning advice should be sought from a certified financial planner, which the author is not. Tax advice should be sought from a CPA.  All investments involve risk and the reader as urged to consider risks carefully and seek the advice of experts if needed before investing.

Comments appreciated! What are your thoughts? Questions?

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