Short Story about The Compound Effect of the $4 Purchase


Here we go again. Another conversation about spending a measly $4 a day. The title actually is a play on words. Let’s talk…

Once there was a hardworking individual that enjoyed a small $4 a day habit. It was as simple as a coffee, lottery ticket, smartphone app, lunch, maybe a beverage after work. Didn’t matter the item, it was only $4, per day. Any hardworking individual could spend $4 without feeling guilty right! Well, sure! But then one day the Hard-worker read a Bookkeeper’s blog, and learned, what that small $4 purchase actual cost. Due to the compound effect, with an mildly aggressive rate of return of the total cost, over 20 years is likely close to $52K! So, do you, Hard-worker, still think the small $4 a day habit is best use of your hard-earned money?

I’m reading The Compound Effect (Hardy 2012). It was brought to my attention when it was referenced in a blog written by my client.  When I mentioned the blog to him, he handed me the book off his shelf. He then shared a picture he took with the author This book made an obvious impact on my client. I couldn’t wait to start reading. Every choice in life has an effect, as Hardy suggests, a compound effect. So, the short story is really a long one. While this theory applies to all areas of your life, food, relationships, success and failures, the conversation about the effect on finances of course peaked my interest. If you think the $4 compound effect is hard to swallow, grab the book and read about the ‘magic penny’. I highly recommend this book to anyone that has ever made a choice.

What choices should be reviewed, revised, redirected, in-order to achieve your financial goals? Did you make the choice not to do any of those options? When you started your business, you wanted to sell your product or provide a service. Your skills were sufficient to do that, successfully. But you also made the choice to ignore the time, attention, and skills needed to keep your financials timely and accurate. This choice has now caused you to lack the details needed to measure your growth and allow for further success. Did you make a choice to ignore the bookkeeping, hire someone without the proper skills, plan to do the bookkeeping when you had time, all the while, hoping it would just ‘work out’? Is it time to review that choice? What is the compound effect on the business? Possibly it is time to redirect and make a new choice.

If your bookkeeping is never organized, never completed in a timely manner, is never accurate enough to create reports or reference for past purchase decisions, contact an expert. Contact OrganizerForU. We can help!


Tammy Stifel
Bookkepping | New Businesses | Quickbooks
p. 515.988.7532


A little more about us:
We guide, assist and manage your bookkeeping operations, customizing our service to fit within your needs, budget and timeframe.

Services include:

  • Providing daily, weekly, monthly or occasional BOOKKEEPING SERVICES. We assist to the degree that meets your needs and your budget. We provide you with a clear picture of your finances.
  • Handling A/P and A/R entries, monthly financial reports, yearly audit assistance, state banking regulation audits, payroll processing, sales tax filing, and developing and implementing work-flow systems to ensure documentation requirements are accurate and complete.
  • Creating the foundation for a cost-effective accounting system for NEW BUSINESSES, and those working to get more established, then providing customized, agreed-upon bookkeeping services contracting with clients for a clear understanding of the services to be provided.
  • SCRUTINIZING existing financials to determine more timely, accurate and EFFICIENT bookkeeping options.
  • Training of bookkeeping personnel in QUICKBOOKS as a Certified ProAdvisor.
  • Examining financials to provide DECISION-MAKING INFORMATION regarding financial department personnel needs, resources and timing for product and service expansion, financial strategies for real estate or asset purchases, etc.
  • MANAGING your books in a way that allows YOU to do what YOU DO BEST, sell your product or provide your services, while staying as involved in the bookkeeping as needed for proper management of your financials.
  • CONSULTING on-call for client financial questions.

OrganizerForU offers a 20- to 30-minute complementary phone consultation. We value your time and we know that time efficiency is cost effective. During our call, we listen as you describe the current financial situation of your business, asking the right questions to determine how our services can meet your needs. We take time to briefly explain how our services are provided, to ensure we are a good fit for your needs and situation.

Leave a Reply

Your email address will not be published. Required fields are marked *