The little things add up (the big things too!)

When people go on spending diets, I feel like they often only look at the big-ticket items. This makes sense when you're focused on the low hanging fruit, but there are tons of small things you can do every day that have the same savings results as big-ticket items.

Let’s start with some big things, shall we? First: Pickup Trucks. Honestly, I think so many truck owners (the ones who aren’t in the business of hauling things daily) are painting targets on their back!  They’re the first to get called by “friends” to move a couch or pick up a new washing machine.  For you folks out there who have large items to haul somewhat-frequently, just into go stealth mode and get a mini-van! Mini-vans have more storage than many pickup trucks, and can carry people comfortably (and safely). Better yet, sell your big truck for a smaller, gas-efficient (or hybrid) car, and save on the purchase price and ongoing fuel costs! Then in the rare cases you have truly huge items to haul, just drop the $20-$40 to rent a Home Depot truck for a few hours.

The same goes for the oversized house you have. Buy what you need for the 95% of the time… not for the other 5%.  It’s nice to have a big house, but every extra square foot means more cleaning to do, more heating and cooling, more carpet to replace, and more taxes and insurance to pay.  Rooms can also serve double-duty! In our house we have a guest room that we double as an office. When we have out-of-town guests they sleep in the queen-sized bed in the office, and kids bunk up in their rooms with sleeping bags for slumber parties with friends or cousins (which is great bonding anyway). We definitely don’t need more than 1 extra room. And if you’re a regular host of multiple out-of-town guests at a time (like around the holidays), then invest in a sleeper sofa. It’s a couch 95% of the time, but doubles as a bed in a pinch.

And now for those small-ticket items… Think about what premium coffee costs. One Starbucks a day equates to $1k/year, which is plenty for a decent vacation, or a semester of class through your kids’ college savings account.  The same goes for meals out, drinks, alcohol, cable, gym, phone, entertainment, etc.  Any one of those won’t break the bank, but adding them up makes a significant difference.

Below are some recurring, small things that so many people spend on (whereas I save).  Some things like cable/home phone/internet are bundled, so for display purposes I’ll unbundle below to show savings.  I haven’t included a lot of other things like oil changes, changing car filters, DIY work on the house, reduced utilities by turning water heater and AC down.  These are just some everyday common things that people spend money on.  Locker at the gym is obviously not an issue for most people, I just find it stupid that I got the gym 4 days/week and the same people have their locker keys that they pay 50 cents at a time for.  What, you can’t be bothered to hold your ID card and car keys?  That’s just crazy and I felt like putting it on my list of savings!

ITEM	COST	MY_COST	MONTH_SAVE	YEAR_SAVE	DESCRIPTION
CABLE	$140.00	$16.00	$124.00	$1,488.00	Netflix + Hulu
INTERNET	$60.00	$60.00	$0.00	$0.00
HOME PHONE	$40.00	$0.00	$40.00	$480.00	No home phone
COFFEE	$5.00	$0.16	$145.20	$1,742.40	Brew it at home
CLOTHES	$100.00	$10.00	$90.00	$1,080.00	Wear my old stuff - work from home
ALCOHOL/BARS	$100.00	$10.00	$90.00	$1,080.00	Don't drink much or go to bars much
RESTAURANT	$500.00	$100.00	$400.00	$4,800.00	Don't go out much; make dinner at home
GYM	$70.00	$7.50	$62.50	$750.00	Local rec center
LOCKER AT GYM	$0.50	$0.00	$8.00	$96.00	I use my pockets
ENTERTAINMENT	$300.00	$50.00	$250.00	$3,000.00
EFFICIENT_DRIVING	$50.00	$0.00	$50.00	$600.00	Less trips, efficient errands = less gas
HAIR	$21.00	$3.50	$17.50	$210.00	Less cuts, wife does some
NAILS	$50.00	$4.00	$46.00	$552.00	Wife doesn't go very often
BABYSITTING	$100.00	$0.00	$100.00	$1,200.00	Use family/friends
LAUNDRY DETERGENT	$20.00	$0.92	$19.08	$228.96	Make my own for pennies on the dollar
DISHWASHER DETERGENT	$10.00	$0.83	$9.17	$110.04	Make my own for pennies on the dollar
GROCERY SHOPPING	$600.00	$400.00	$200.00	$2,400.00	Buy less crap, shop for efficient deals
TOTALS			$1,821.45	$21,857.40

Obviously the big things, like house size, car, vacations (things that most families have a conversation about before spending money on) can really break the bank. Saving on those items is really key. But the small things really do add up.

So when you want an iced coffee, just spend a little more time on prep – freeze leftover coffee into ice cube trays and you will be ready for iced coffee the next day.

 

http://coffeetalkwithcharlene.blogspot.com/2012_07_01_archive.html

Instead of taking the family out for even a fast casual meal, think about the $40-50 you will be spending. You can make something at home for far less. Instead of paying babysitters for nights out, create friendships with your neighbors. You will save a ton in entertainment, while still feeling like you got a “night out.” Every time you drive, analyze whether it is the most efficient way to do things. For example, I drive a specific loop that I’ve calculated minimizes distance in the car to pick kids up from school and take them to practices. I modify that loop when I need to stop for gas, as I always choose the least expensive gas station. I even make sure to stop at a specific rest exit in the four hour drive to visit my folks, as it is the cheapest gas in the area. Our boys go through shoes quickly, so my wife shops at a local consignment shop and can usually find very inexpensive shoes in very decent condition for the kids.

Obviously, big items like house size, cars and vacations can really break the bank. Saving on those items is key, but the small things really do add up.  If you can change your way of thinking, make more things, cook at home, be more efficient with your driving, drink less alcohol (or just drink at home), fix it yourself, do a babysitting co-op or ask family to watch your kids every once in a while, don’t hire a lawn service, use credit cards efficiency, then you will inevitably save a lot of money.  I routinely chat with my older sister (who is always attempting to save money), and these small things are where she spends… and I save.  I calculated over $20k in savings each year for things she routinely spends money on.

In addition, my wife gets wellness rewards at her work for having regular doctors’ appointments, and for logging exercise time. This actually nets her about $20-30/month in gift cards that she can redeem.  Plenty of insurance companies will also reimburse a portion of your gym membership.  Also, whereas I used to use my debit card for everything because I didn’t like spending money I didn’t actually have, I now use a credit card that gives 2% cash back on everything… so I’m essentially only paying 98% of any sticker price (and I just pay off my card every month in full).

In summary, focus on the big stuff, but don’t ignore the small stuff. Adding those up will definitely save you big!