Advertising
Advertising

Challenge Yourself To Avoid These 10 Frivolous Expenses For One Month

Challenge Yourself To Avoid These 10 Frivolous Expenses For One Month

Did you know that simply by having one Starbucks coffee per day, five days per week, that you are spending over $1,000 per year? Just think about what else you could be doing with that money. We all spend money unnecessarily. After all, we think nothing of spending a couple of dollars here and there. But, every penny adds up, and we spend thousands of dollars each year on things that we really don’t need. Here are 10 avoidable expenses that most of us are guilty of wasting money on.

1. Daily Lunches

As a busy person, you may not have time to make lunches to take to work, so you spend money to eat out every day. No matter where you go, you are going to spend at least $5 per day. That adds up to over $1,000 each year. Make your lunches at home the night before to save time and money. Here are great healthy lunch recipes all clock in at $3 or less per serving.

Advertising

2. Weekly Pizza Night

If you get a pizza for your family once a week, you are spending at least $20 to $30 each week. That adds up to $1,000 or more each year. Sure, we all need to treat ourselves now and again, and who doesn’t like pizza? But, why not cut back to one pizza night a month. You will be saving $60 to $90 per month, or more. Also, there are always great tasting grocery store pizza that could cost you only $5-$6.

3. Travel

You may love to travel, but it gets pretty expensive after a while. You can’t get a decent motel room for less than $100 per night, and then you have to pay for meals, and have spending money. You also have to spend a lot on airfares. Instead of giving up on travel, find ways to have budget vacations. For instance, you can get great deals on airfares at Kayak and Airfares Flights. Find a bidding site to bid for less expensive hotel rooms and find local eating deals through that city’s online coupons and meal deals.

Advertising

4. Books

The cost of books gets higher and higher all the time. A cheap paperback novel now costs upwards of $10. Reading shouldn’t have to be a luxury. But, instead of spending a lot of money on books, why not get them from your local library for free? Book getting can be accomplished with a Kindle Unlimited membership for just $9.99 a month as well.

5. Clothing

You don’t need to have three closets full of clothing, or hundreds of pairs of shoes. All a person really needs are a few main pieces, a few accent pieces, three to four pairs of shoes, and some accessories. You can save money by cutting back on clothes shopping. You can make money if you clean out your closets and sell all those clothes you aren’t even wearing. Neighborhood swapping party to get new sizes that the kids or you need also is a great way to save money on your clothes.

Advertising

6. Weekly Movie Nights

It’s nice to have date night with your significant other, but for two people to go to the movies, it costs upwards of $50 if you get popcorn and pop. You can save money by cutting back to one date night a month. Buying tickets at the Box Office will save you $1-2 that you’d pay for online booking. Find a late-run theater and watch movies later. You can still enjoy each other’s company by renting a movie or streaming on online. There are tremendous savings to be had with streaming movie options, investigate if one is a good fit for your household.

7. Beer

Beer, or any other alcoholic beverage, is expensive. It is even more costly when you choose to drink at a bar with friends instead of at home. By cutting back on the amount of alcohol you consume, you will be saving a lot of money. You may even lose weight and feel healthier. If you must socialize with a cocktail, choose Happy Hour times, some places even have late night reverse Happy Hour!

Advertising

8. Lottery Tickets

Do you really need to spend money on those lottery tickets every week? Sure, winning is fun, but take a good look at what you spend compared to what you win, and you will realize just how much you have lost over the years. Perhaps making it an indulgence instead of a habit is a better fit. Maybe establish a ‘couch fund’- money found in the couch, for treats like this.

9. Treats for the Kids

Do you bring home treats for your kids every time you go shopping? This can get pretty expensive after a while. It also will cause your kids to not appreciate real treats. Cut back on the treats for the kids, save money, and as a bonus, this may help them to grow into adults who appreciate all that they do have.

10. Cigarettes

If you are a smoker, you are likely spending at least $10 per day on cigarettes, depending on how much you smoke. Quitting is hard, but it is well worth the effort. You will be saving over $3,000 per year, and improving your health. If you can start by weaning yourself down on the nicotine aspect with patches and the oral aspect with suckers, eventually you will thank yourself and feel better as well.

Featured photo credit: pshegubj via flickr.com

More by this author

Jane Hurst

Writer, editor

Stay Productive On The Go – The Top 20 Tools For Digital Nomads 10 Great Books to Help You Find the Meaning of Life 30 Makeup Hacks That Will Change Every Girl’s Life 15 Best Brainstorming And Mind-Mapping Tech Tools For Every Creative Mind The Best 8 Project Management Apps

Trending in Money

1 The Best Ways to Save Money Even Impulsive Spenders Can Get Behind 2 How to Answer the Tough Question: What are Your Salary Requirements? 3 How Personal Finance Software Helps You Get More Out of Your Money 4 The Definitive Guide to Get Out of Debt Fast (And Forever) 5 35 Real Ways to Actually Make Money Online

Read Next

Advertising
Advertising

Published on November 20, 2018

The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

The truth is, there are many “money saving guides” online, but most don’t cover the root issue for not saving.

Once I’d discovered a few key factors that allowed me to save 10k in one year, I realized why most articles couldn’t help me. The problem is that even with the right strategies you can still fail to save money. You need to have the right systems in place and the right mindset.

In this guide, I’ll cover the best ways to save money — practical yet powerful steps you can take to start saving more. It won’t be easy but with hard work, I’m confident you’ll be able to save more money–even if you’re an impulsive spender.

Why Your Past Prevents You from Saving Money

Are you constantly thinking about your financial mistakes?

If so, these thoughts are holding you back from saving.

I get it, you wish you could go back in time to avoid your financial downfalls. But dwelling over your past will only rob you from your future. Instead, reflect on your mistakes and ask yourself what lessons you can learn from them.

It wasn’t easy for me to accept that I had accumulated thousands of dollars in credit card debt. Once I did, I started heading in the right direction. Embrace your past failures and use them as an opportunity to set new financial goals.

For example, after accepting that you’re thousands of dollars in debt create a plan to be debt free in a year or two. This way when you’ll be at peace even when you get negative thoughts about your finances. Now you can focus more time on saving and less on your past financial mistakes.

Advertising

How to Effortlessly Track Your Spending

Stop manually tracking your spending.

Leverage powerful analytic tools such as Personal Capital and these money management apps to do the work for you. This tool has worked for me and has kept me motivated to why I’m saving in the first place. Once you login to your Personal Capital dashboard, you’re able to view your net worth.

When I’d first signed up with Personal Capital, I had a negative net worth, but this motivated me to save more. With this tool, you can also view your spending patterns, expenses, and how much money you’re saving.

Use your net worth as your north star to saving more. Whenever you experience financial setbacks, view how far you’ve come along. Saving money is only half the battle, being consistent is the other half.

The Truth on Why You Keep Failing

Saving money isn’t sexy. If it was, wouldn’t everyone be doing it?

Some people are natural savers, but most are impulsive spenders. Instead of denying that you’re an impulsive spender, embrace it.

Don’t try to save 60 to 70% of your income if this means you’ll live a miserable life. Saving money isn’t a race but a marathon. You’re saving for retirement and for large purchases.

If you’re currently having a hard time saving, start spending more money on nice things. This may sound counterintuitive but hear me out. Wouldn’t it be better to save $200 each month for 12 months instead of $500 for 3 months?

Advertising

Most people run into trouble because they create budgets that set them up for failure. This system won’t work for those who are frugal, but chances are they don’t need help saving. This system is for those who can’t save money and need to be rewarded for their hard work.

Only because you’re buying nice things doesn’t mean that you’ll save less. Here are some rules you should have in place:

  1. Save more than 50% of your available money (after expenses)
  2. Only buy nice things after saving
  3. Automate your savings with automatic bank transfers

These are the same rules that helped me save thousands each year while buying the latest iPhone. Focus only on items that are important to you. Remember, you can afford anything but not everything.

How to Foolproof Yourself out of Debt

Personal finance is a game. On one end, you’re earning money; and on the to other, you’re saving. But what ends up counting in the end isn’t how much you earn but how much you save. Research shows that about 60% of Americans spend more than they save.[1]

So how can you separate yourself from the 60%?

By not accumulating more debt. This way you’ll have more money to save and avoid having more financial obligations. A great way to stop accumulating debt is using cash to pay for all your transactions.

This will be challenging, depending on how reliant you are with your credit card, but it’s worth the effort. Not only will you stop accruing debt, but you’ll also be more conscious with what you buy.

For example, you’ll think twice about purchasing a new $200 headphone despite having the cash to buy them. According to a poll conducted by The CreditCards.com, 5 out of 6 Americans are impulsive spenders.[2]

Advertising

Telling yourself that you’ll have the discipline to not buy things won’t cut it. This is equal to having junk food in your fridge while trying to eat healthy–it’s only a matter of time before you slip. By using cash to make your purchases, you’ll spend less and save more.

A Proven Formula to Skyrocket Your Savings

Having proven systems in place to help you save more is important, but they’re not the best way to save money.

You can search for dozens of ways to save money, but there’ll always be a limit. Instead of spending the majority of your effort saving, look for ways to increase your income. The truth is that once you have the right systems in place, saving is easy.

What’s challenging is earning more money. There are many routes you can take to achieve this. For example, you can work long and hard at your current job to earn a raise. But there’s one problem–you’re depending on someone else to give you a raise.

Your company will have to have the budget, and you’ll have to know how to toot your own horn to get this raise. This isn’t to say that earning a raise is impossible, but things are better when you’re in control right? That’s why building a side-hustle is the best way to increase your income.

Think of your side-hustle as a part-time job doing something you enjoy. You can sell items on eBay for a profit, or design websites for small businesses. Building a side-hustle will be on the hardest things you’ll do, be too stubborn to quit.

During the early stages, you won’t be making money and that’s okay. Since you already have a source of income, you won’t be dependent on your side-hustle to pay for your expenses. Depending on how much time you invest in your side-hustle, it can one day replace your current income.

Whatever route you take, focus more on earning and save as much as possible. You have more control than you give yourself credit for.

Advertising

Transform Yourself into a Saving Money Machine

Saving money isn’t complicated but it’s one of the hardest things you’ll do.

By learning from your mistakes and rewarding yourself after saving you’ll save more. What would you do with an extra $200 or $500 each month? To some, this is life-changing money that can improve the quality of their lives.

The truth is saving money is an art. Save too much and you’ll quit, but save too little and you’ll pay for the consequences in the future. Saving money takes effort and having the right systems in place.

Imagine if you’d started saving an extra $100 this next month? Or, saved $20K in one year? Although it’s hard to imagine, this can be your reality if you follow the principles covered in this guide.

Take a moment to brainstorm which goals you’d be able to reach if you had extra money each month. Use these goals as motivation to help you stay on track on your journey to saving more. If I was able to save thousands of dollars with little guidance, imagine what you’ll be able to do.

What are you waiting for? Go and start saving money, the sky is your limit.

Featured photo credit: rawpixel via unsplash.com

Reference

Read Next