Savings Idea

$ per year

Skip that daily Mocha-super latte per 200 days @ $3.50

$700

Use library books instead of buying

$120

Shop for a low-fee bank

$150

Buy regular instead of high-test gas - save $.15/gal X 750 gal

$112

Read magazines at library instead of subscriptions

$100

Brown-bag lunch twice more a week 50 weeks @ $5.00/lunch

$500

Stop caller ID or other phone service @ $8/mo.

$96

Suspend cable TV for 1 year - read library books - expand mind!

$540

Use coupons when grocery shopping

$60

Change your ISP to a cut-rate local firm @ $9.95 per month

$140

Quit smoking 2 packs-a-day cigarettes 365 @ $3.50 pack

$2,555

Carpool to work - split parking & gas 50:50

$360

Save your pocket change daily $.42 X 250 days

$105

Go to movie matinees instead of after 6 PM 1 per month

$36

Adjust heat & hot water down a few degrees

$120

Only get credit cards with no annual fee - 1 @ $40

$40

Buy clothes only on sale - Save 30%+

$600

Use land-line instead of cell phone (eliminate 1 cell phone)

$360

Join a warehouse club - save %15+

$120

Reduce your long distance phone bill by using prepaid cards

$120

Donate $1,000 value to charity - save minimum 20% on taxes

$200

Prepay mortgage or other deductible expense - save on taxes

$550

Give away one pet

$560

Buy a used car (2 yrs.) instead of new one –save on purchase + depreciation

$3,000

Buy car instead of SUV – save gas, tires, repairs: depreciation

$2,100

Join YW- or YMCA instead of fancy gym – lower dues

$360

Use credit card with annual rebate – save 2%

$200

One less activity for family member

$360

Garage sale annually

$250

SUB TOTAL

$15,014

$/month

$/year

25 year value

30 year value

 $        333

 $     4,000

 $  230,998

 $   334,838

 $        417

 $     5,000

 $  288,747

 $   418,548

 $        500

 $     6,000

 $  346,497

 $   502,258

 $        583

 $     7,000

 $  404,246

 $   585,967

 $        667

 $     8,000

 $  461,996

 $   669,677

 $        750

 $     9,000

 $  519,745

 $   753,386

 $        833

 $   10,000

 $  577,495

 $   837,096

 $        917

 $   11,000

 $  635,244

 $   920,805

 $     1,000

 $   12,000

 $  692,994

 $ 1,004,515

 $     1,083

 $   13,000

 $  750,743

 $ 1,088,225

 $     1,167

 $   14,000

 $  808,493

 $ 1,171,934

 $     1,250

 $   15,000

 $  866,242

 $ 1,255,644

Barrier

Ideas for success

No clue where the money goes

(You cannot cut back on something that you don’t realize exists.)

Record every expense for at least a month and summarize into useful categories (e.g. rent, utilities, gas, groceries, clothing, car loan, cleaning, coffee, meals in restaurants or take-home, pets, tobacco, liquor, cable, cell phones, internet services, land-line phones, etc.).  Check your credit card statements for the last few months and average expenditures.  Do the same with your checkbook.  Account for every dollar spent in cash.  Using a budget is a great way to get on track and stay there.

No will power

1.      Buy only what you NEED not just what you WANT.  Ask yourself, “Do I need that or do I just want it?  And if I just want it, is it really worth it?”  If the answer is “no” don’t buy it.  Even if the answer is “yes” try to find a less expensive alternative.

You really do not have to spend, spend, spend to be happy.  That neighbor with the fancy house and cars may be miserable because of backbreaking debt.

2.      Cut up your credit cards

3.      Pay cash only and keep track of the cash you spend

4.      Keep track of your debt reduction and savings to remind yourself how well you are doing.

5.      Celebrate your success (modestly, of course) to reward yourself for your hard work.

No ideas on what to cut back on

See the following table with suggested ideas.  I bet you didn’t realize what some of these items cost on an annual basis.