We have seen in other items such as planning or reduce debt payments. But always talked big all suffer payments: mortgage, car, light, water, telephones … But one factor which few pay attention and can lead to a change in our financial situation: small expenses.

Every day we spend money on things not essential to maintain our standard of living. For example, we had coffee in the cafeteria, smoke, buy gum, constantly call for the mobile media buy, we buy bottled water, etc..

The expense of such small quantities can in principle be avoided: we can have coffee at home, quit smoking (and thus win in economics and health), no gum chewing compulsively (only occasionally to refresh the mouth, eg ), call on his cell phone only for important things (not silly), read the news in the digital editions of newspapers, or avoid taking the car up to go to the corner (you can walk or take public transport), we can drink tap water at home or have a filtering system (in the medium term is amortized by far) … All this will save you money.

The problem is that when individual costs so little, do not give them importance. We will see that ultimately, the expenditure is large and that can help pay off other debts more important.
Let’s make an example summary table of average daily expenditure
How Much Do you avoid? (Yes / No)
Coffee 3 € Yes
snuff 3 € Yes
newspaper 1 € Yes
Mobile 1.5 € Yes
gasoline 3 € Yes
water, 0.5 € Yes
another 2 € Yes
Total 14 € Yes

Here It seems that the sums begin to be more important. But we go a little further.
How much money we spend on monthly and annual disposable stuff?

Monthly cost: 14 x 30 = 420 €
Annual: 14 x 365 = 5,110 €

It shows that money spent can be a lot. Even for someone who only drink coffee away from home once a day (1 €) saving of 365 € per year and would have to be taken into account. That is, for example, a letter from one of our loans.

But we go a little further.
Savings we can get by stop spending money on superfluous things

These savings can be redirected to other payments, investments, generating greater savings. For example, if we decide to invest the € 5110 to recoup part of our mortgage, we get a reduction in the time and therefore a lower burden of very substantial interests.

For example, a 20-year mortgage of € 100,000 at 5% interest, at odds of 660 € a month, reduce your time in nearly two years, which means a big saving in interest and tax profit also increased by the increase deductions for house purchases (due to the payment of those extra € 5110).
What if we saved the capital invested by stop spending money on unnecessary things?

If the annual spending on little things we looked much expendable, let’s see what happens if we compare the value of that money in the future.
Term Investment Total Return at the end of term
5110 € 5 years 5% € 6521.80
5110 € 10 years 5% € 8323.65
5110 € 15 years 5% € 10,623.32
5110 € 20 years 5% € 13,558.35
5110 € 40 years 5% € 35,974.34

Recall that Co = C1 / (1 + i) ^ n where:

1. Co = capital value today (what we want to calculate)
2. C1 = value of capital in the future (2143.8 €)
3. R = nominal interest rate (5% = 0.05)
4. n = time (in years 6 months = 0.5 years)

Co = 2143 / (1 + 0.05) ^ 0.5 = 2092 €

Here is what they seem perfectly that small quantities are unimportant, in fact, very large quantities when accumulated over the years.

In the case of investment to 40 years, we can say that if this is a big part of life we have, save those nearly € 36,000 to spend on just leaving things disposable.