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Found 6 entries.

The Little Things that Change Your Life Really Quickly

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Every now and again, you see something and you say to yourself "That's a good idea". Sometimes it's the big things, like a different bank with a lower mortgage rate interest, a fuel efficient car, a type of insulation or even a kind of lawnmower. You just know if you were to switch to any of these it would somehow improve your life since they are such an integral part of it.

But other times, you see something really small and you think "Wow, if only I'd switched to this before." Well, this is my story of something really small, something I bought yesterday and already I know it has changed my life and changed it for the better.

Prior to My Purchase

A few weeks ago I was chatting to some friends of friends. People I had met a few times before and already knew I liked them both. They were telling me of their habit of switching every single electrical appliance off at the plug when not in use. The only thing that stays on in the house when they go out is the fridge (actually, they said everything but I presume the fridge stays on).

This includes the likes of the TV, DVD player, stereo, speakers, microwave and all those other things with the shiny clocks, the bright displays or the standby LED lights. We know these are a constant drain on power (and therefore money) so why not switch them off? I knew, but I didn't really practice it.

I'm Not That Good

There are some things I do but switching things off by the plug isn't one of my strong points, which is weird, because I always used to do it. I guess I just got out of the habit. I have always switched off the microwave but my main problem (and mainly because I'm a geek) is that my router and my computer stay switched on. I will have to change this at a future time but now I decided to concentrate on something else.

As we were talking, I curiously asked one little question which eventually brought about my purchase yesterday. I asked "What about your alarm clock?"

"Mine isn't plugged into the mains, it's on batteries, just a small travel alarm."

"Ah", I said, "That's pretty cool."

Not sure I had that 'Wow!' moment yet but it got me thinking, enough to actually go out and get myself a cheap (real cheap) battery operated alarm clock yesterday. My old one, a plugged-in one, with a bright and energy zapping red LED display was having trouble tuning in to certain radio stations anyway and the non-radio alarm was a horrible dull noise which sounded more like a jet engine trying to start but not actually going anywhere. So in reality, it was about time I got a new one anyway.

Added to the fact that I had a new reason for getting one too.

My New Alarm Clock

When I bought it in the shop, I realised that the alarm clock also had a temperature gauge on it. Cool, that's pretty neat. Still no wow factor but nice nonetheless. Then I got it home.

I duly opened up the very small packaging and pulled out a square of about 2.5"x2.5"x1". My old alarm clock was at least 6"x2"x4" so already I had made a lot more space on my side table. Seeing as I'm in the middle of decluttering my house, I started thinking out that this new alarm clock was a winner.

But that's not all. The old alarm had it's power cable running forwards of the bedside cabinet since there are no plugs behind it(it's an old house). With that taken away and the long aerial gone too, the area to the side of my bed is no longer a strewn and busy place but more a tranquil, quiet and warm place.

I started liking the alarm clock even more.

My Two Weather Stations

I bought an electronic weather station a few years ago and have been hauling it around to each place I moved. Alas, the only thing I ever looked at it for was the inside temperature since all the other readings just didn't bother me. Also, my Mum (for all her love and kindness) actually bought me a similarly duplicate weather station for Christmas last year and I've never had the heart to sell it or give it away. (We all know what I think about Christmas presents anyway.)

But enough is enough.

I decided that with my new temperature sensor in my new tiny alarm clock, I could actually get rid of both of these unnecessary weather stations. Wahoo! Another quick win for me, my house and my new simple life and another win for the small, cheap and somewhat-versatile alarm clock.

The Drawbacks

Not everything in life goes as swimmingly well as had been going thus far and I soon figured out the one minor and the one major drawbacks of the new alarm clock.

Firstly, there are only two buttons to the whole clock. This means that having to set the time, or more likely the alarm, is a complete pain. It doesn't even allow you to keep the button depressed to increment the numbers faster. Ah well, this is minor and I can live with it since I rarely change it anyway and usually just switch it off at the weekends.

The other drawback however is when I realised that this clock doesn't even have a snooze button. You know, the one you press in the morning just so you can get another nine minutes sleep. Then because that wasn't enough, you press it again for another non-satisfactory nine more minutes. This, as far as I was concerned, a terrible mark against the almost perfect new purchase.

Taking What You Want From Life

Over the course of the day though, I figured that both of these minor disadvantages could be made to work for me rather than against me. On the point of the inefficient button pressing, I have decided to set the alarm for 7:30 in the morning and to leave it at 7:30 in the morning, for every single day of the week including weekends. I am not going to bother trying to change it at the weekends or any other time unless I have special reason to.

This will make sure I get up at the same time every single day and maybe one day my body willget used to it and not actually need the alarm anymore.

But the best thing I think I figured out with this alarm clock is that, without having a snooze button, once the alarm clock went off, I would have to force myself out of bed, no matter what! As soon as I figured this out, I knew that this was now a 'Wow!' purchase, not through any fault of it's own but due to the way I shall be adapting to my new beeping friend.

The Full Story

I didn't realise originally how much or how quickly such a small purchase could provide but I'd like to recap these new advantages just in case you missed them:

• I don't have to listen to crap and over-advertised radio in the morning
• it doesn't burn through grid power all the time I'm not using it
• it takes rechargeable batteries
• it has uncluttered my bedside table
• it had removed hazardous cables stretching to the plug away from my bed
• I have removed two other unnecessary gadgets from my life
• it will set me a regular (and reasonably early) time to get up at the weekend
• it will force me out of bed at a particular time instead of snoozing around all day

... and of course, the reason why I wanted to get it in the first place, is so that it lowers my electricity bill ever so slightly. However, the thought of not having another appliance switched on all the time led me to turning off most of those other appliances too. This is where each individual gains adds up.

Take From this Story What You Will

You might think that this whole alarm clock story is silly, small and insignificant. That's fine, take from this story what you will but I'm willing to bet that there is something small you have bought, or changed in your life, from which you got enormous satisfaction. It may even have had further repercussions further down the track and you never know how much the addition of all those small but incremental changes finally make to your life.

This is also a story about how negative or disadvantageous things can be turned to your advantage. I mean, having more time in my day is something I am already looking forward to...

...all because of one small, energy efficient, compact, temperature reading, non-snoozing, hard to use, little beeping alarm clock which is now sitting happily on my bedside table next to my lamp, my notebook, a pen and nothing else.

Ah, happy days.

Let me know of any other things which at first seemed small to you but later took on a whole different meaning.

Labels: budgeting, living, consuming

Inserted: 2008-12-14 22:26 (3 years, 2 months ago)

Are You Throwing Away Money? 5 Tips to Save You Money

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Everytime you buy something with packaging, you're buying something only to throw away. Sounds crazy doesn't it but it's true. And for everything you have to throw away you also have to pay the council to come and take it away too so you're getting a double whammy against your wallet right there.

Think about it. You buy a six pack of yoghurts, or maybe a one litre container, and where does the packaging end up. That's right, in the bin. So firstly, you paid for the plastic to make the container and secondly you're having to pay to take it away again! (Unfortunately where I live, the council doesn't recycle that kind of plastic, so it has to be thrown out.)

That was just one example, but let's look at some others and some possible solutions.

1) Replacing 'Use Once' Kitchen Paper with Multi-Use Cloths

Back in October, I realised that I used a lot of kitchen paper. Usually because I use it for the cat's bowls so I don't have to use my normal tea-towel. I don't have a huge amount of space in my kitchen so I prefer to have as few things as possible in there. Then I read an article which made me wonder why I was doing this.

Two months on, I'm just about running out of kitchen paper and last weekend I bought 4 facecloths (30% off of course) of about the same size as kitchen paper to be used instead. So let's look at the maths.

Two rolls of kitchen paper lasted me around two months. At about $1.50 per roll, that'd be something like $18 over the space of a year. The 4 facecloths I bought cost me a grand total of $5.54, just a bit below four rolls of paper towels. Each paper towel roll has 80 sheets, but these cloths will keep going for years. In fact, within less than 4 months the facecloths (now multi-use-cloths) will have paid for themselves.

Let's add to the equation that paper towels add to your waste even if this is insignificant. Ok, to be fair, I will have to wash the cloths every now and again (dependent on function) but this won't add up too much either. Certainly not as much as $12 in the first year and $18 for every subsequent year. Overall I'd say this was well worth it, not just because of money but for reducing waste too. Remember the paper towels also come in plastic bags whilst the tea towels just had a small paper tag.

2) Not Accepting Plastic Shopping Bags

No matter what you think about free plastic bags, whether you use them for lining your bin or otherwise, you still have to pay for them in one way or another. Usually they are counted as overhead for the shop so it's almost like everyone has to pay a 'plastic bag tax' when shopping at that particular store.

This 'tax' can be easily avoided by shopping at places which charge for giving out plastic bags. Therefore, only the people who use them have to pay for them. I presuming here that you won't pay for them because you're cleverer than that and instead use re-usable bags.

I myself have two cotton bags which I try and use every time I head to the supermarket. I must admit, every so often I forget and have to unwillingly take a bag but every time it makes me feel sad so this is something I really need to fix and stop doing.

An example of a place in New Zealand which charges for plastic bags is Pak'n'Save. They even advertise the fact that they charge for them to keep prices lower for everyone. Good on you Pak'n'Save! Unfortunately I believe all the other supermarkets still give out free bags, which is crazy because they also try and sell reusable plastic ones too! Let me know if you know of other stores here in NZ which also charge.

(Side note: when I was in the UK back in 2001, one of the supermarkets, Sainsburys', used to give me money every time I used a bag of my own! Granted, it was only 1p but forward thinking such as this innovative and also proof of the plastic bag tax.)

3) Composting your Organic Material

Almost every bit of your organic material can be composted and again this helps in many different ways. Firstly, your volume of waste reduces and therefore lowers the amount of money you spend having it taken away. Secondly you can use the compost on your garden the following year to create a rich soil in which to grow your vegetables - another source of food at a lower cost to you.

Finally, composting also prevents the organic material from going to the tip, in which conditions, instead of breaking down aerobically (with oxygen) it breaks down anaerobically (without exygen) and produces methane. In some landfills this is captured and used as an energy source but in most cases it leaks out into the atmosphere and is a significant contributor to the greenhouse effect.

What not to compost also helps when deciding whether something belongs in the compost or the rubbish bin. You'll have to figure out which plants are classed as weeds in your local environment since I think that article was written for a North American audience.

Even if you don't have a compost heap, you can (and should) just throw your organic waste onto your land anyway so that it can decompose naturally. This is something I had not heard about before, though it makes perfect sense and seems to be called Passive Composting. Quite a few things to gain for not that much work.

4) Shop Around the Outside of the Store

The science of laying out a supermarket is very well known to make shoppers buy impulsive purchases. Those tempting and scrumptious chocolatey or sweety things (as well as other fast but processed food) are all laid out in the thin aisles in the middle of the store. When you're stuck in a trolley-jam in the middle, your eye gets tempted by all those processed foods.

Generally you don't need these items but sometimes you want them. That right there should stop you buying them since they are a want, not a need. That's the first reason not to shop in the middle of the store and to limit your trip to around the outside.

But think about this too. Not only do you not need many of those items, you're also not even getting value for money since most of these things come in layers and layers of packaging. Take a simple block of chocolate. It is firstly covered in metal foil, then has a paper sleeve. A packet of individually wrapped sweets has got to be one of the worse culprits (think individually wrapper foil, with a sticker on, stuck to a frilly cup, all enclosed in further plastic). Even something better like a jar of pickle means you're paying for the jar and lid.

Next, think about the items of food which are better for you, especially the fruit and veg. I rarely use any bags in that section and instead put my purchases directly into the basket and then directly into my cotton bags at the checkout. Occasionally I think the cashier is a little annoyed since individual tomatoes can be trickier to handle than a bag but in reality, that doesn't bother me too much. Bananas are cool since they come in their own packaging and one which can also be recycled!

In reality this point doesn't always hold true (milk cartons for example) but the majority of items in the middle of the supermarket have an excess of packaging you just don't need. Also remember that when you do need something, buying in bulk also helps reduce your waste per unit item if this item can't be avoided.

5) ... and Back to Those Yoghurt Pots

In September, I was buying those 6 packs of yoghurt for around $3.00 when they were on special. (I refused to pay the normal astronomical price of over $5!) One week when none of the brands were on sale, I progressed onto buying a one litre container for around $3.50. It had less plastic (by my unprovable calculation) and more yoghurt per 100g than the multipacks. In both circumstances, I was still throwing away a fair bit of plastic.

Recently, I have taken my yoghurt maker out of retirement. I bought it a few years ago ($20) and stopped using it, mainly for the fact that my supermarket (New World) was charging over $3.50 for a packet which makes one litre. Ignoring the packaging for now, that in itself didn't make financial sense to me and more especially so since I think the normal yoghurt is a little nicer.

It turns out that after speaking to a friend of mine, the other brand of make-it-yourself yoghurt can also be used in my maker - and why I didn't think about this before, I don't know. Also, the Pak'n'Save (to which I shall now be making regular bike trips) was selling that brand for around $2.50. Overall a $1 saving on sale yoghurt and probably about $3 on regular priced yoghurt. In fact, it's nicer than the other make-it-yourself brand too. I usually go through just over one of these yoghurts a week, so within year one, I'll be saving over $30 and over $50 annually after that.

And did I mention that the packets the yoghurt comes in are just thin packets which scrunch up into a small ball. They take no space at all and could probably fit 100 of them into one of the one litre containers above. Yet another saving on waste collection.

You should also try it and see how it goes. You'll find that a bit of pre-planning means that you can make that yoghurt (12 hours wait), chill it and have it on the table ready whenever you need.

The Challenge is On!

This post was inspired by a challenge I read about a few weeks ago. EnviroMom blogged about the One Can a Month Challenge which I think means, in non-US terms, one trashcan/bag a month.

As I mentioned earlier, I have already noticed that the volume of waste I produce was lowering. There have also been some recent changes (such as the yoghurt and paper towel techniques) which will also reduce my waste levels and there are still some things I want to try to reduce it even further.

In trying out this challenge I decided to start when I last put out a bag for collection. That was two weeks ago and already I can see an improvement. In fact, I haven't even put my kitchen bin into the outside bin yet and usually it takes two of those for a full bag.

So far so good. I would say wish me luck but with these techniques, I won't need it!

Why don't you trial 'One Can a Month' and see how you go. Let us know how you get on or if you're already doing it.

Labels: planning, saving, consuming, shopping, spending

Inserted: 2008-12-11 22:25 (3 years, 2 months ago)

Turning Lifestyle Inflation into Lifestyle Deflation

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In my earlier article on Managing your Lifestyle Inflation, I mentioned something which Karen Datko at Smart Spending seemed to click with. She said:

Andrew suggests that you look at expenditures you started making after your pay went up. "If you didn't have these things before, then you can probably still do without them now," he writes.

That was just a small part of my previous post but it is an interesting one. Essentially by sticking to your same budget, even after you get a pay-rise, then you are recognising this extra income for yourself and actually paying yourself first before adding to your lifestyle expenses. By swiping the extra into your savings account and not spending any more than before then you are managing your lifestyle inflation.

Lifestyle Deflation

More importantly though, you also need to look at downsizing your lifestyle too. There's no point just starting from now and saying "When I get future pay-increases, I won't spend that", it actually needs to start before then. After all, maybe your lifestyle expenses are already too inflated ... usually this is the point at which you're spending everything you earn or even worse and spending more than you earn.

Instead, you should review your life as it is now. Look for the simple things you can remove and also go over your regular expenses to see which you can cut down or at least cut back on. I mean things like whether you increased your cable subscription to include more channels the last time you got a pay-rise. Do you even watch them? I bet not.

Expanding your Savings Range

This year I managed to get a pay-rise but instead of spending more, I actually started removing a number of (unnecessary) things from my life. The latest item I removed was my car seeing as I hardly ever used it. In total, I think I'll actually be up around $200 every single month now that all those car expenses are gone.

Both my pay-rise and my ability to cut out unnecessary things are actually expanding my savings range. I'm spending less of what I earn and therefore saving more. I'm also earning more than before and my savings increase there too. It's funny since I don't miss anything I cut out and instead I have replaced them with other more frugal activites.

When the Economy Improves

Karen also suggests something which should also be added to this list of things to do. Firstly, we're not succumbing to lifestyle inflation, in fact we're actively managing lifestyle deflation and to add another thing into the equation, especially for the current environment, Karen says:

We suggest that if you're cutting back in anticipation of the worst, you consider carrying that new budget forward when the economy improves (and it will).

With an improved economy, you may think that we are out of the woods and home-free but in reality it's still a long way to go to reach your prosperous and financially independent future-self. So instead of madly spending like others will when the economy is looking brighter, just quietly go about your usual still frugal way of life. And instead of reveling in the spend-happy new environment just take a moment to revel in the new and improved ways the new economy will help you save even more money and further reduce your lifestyle expenses.

P.S. After writing this article, I found that The Tao of Making Money previously mentioned Lifestyle Deflation in an article back in Feb 2008, though I can't find any other references to link to.

Any others articles about 'Lifestyle Deflation' you know about? What are you doing to actively manage your lifestyle expenses?

Labels: budgeting, earning, saving, consuming

Inserted: 2008-12-06 18:36 (3 years, 2 months ago)

'Living it Down Small' instead of 'Living it Up Large'

Have you ever seen the lights in Las Vegas? How about the skyscrapers of Hong Kong or New York? Ever been through the suburbs of Los Angeles or seen the sprawling mass of London?

To me, these cities typify places in which you can Live it up Large. Large living, large entertainment, large houses (ok, except for Hong Kong). Over the last few years however, I have been downsizing my living spaces each time I have moved and have really enjoyed moving into smaller and smaller places. Before that I had constantly moved into bigger and bigger places. Each time I moved, I ended up getting more stuff to fill it, in a lot of cases sometimes stuff that I didn't even want.

Going Smaller

Five years ago I moved into a small two bedroom house and only had two bags and a box. Over time, I bought stuff. Then I moved into a larger two bedroom house and filled that too. I then graduated to three bedrooms (and two bathrooms) and whilst I didn't fill that space, it had plenty of stuff spread throughout. Then I started going smaller. I squeezed all my stuff into a two bedroom unit and finally, I am now in a one bedroom flat.

Over that time, none of these moves have been related to my current financial plan though I guess my last move was a pre-cursor to it. I realised that I could live in town for less money than living in the burbs for more. That also generates a saving on transport too.

When I first moved in, it was physically impossible to move since I had so much stuff in such a small place. However, over the past few months I have been amazed at how well I have been getting rid of stuff. The floor is now something I see every day but I know I can clear all this stuff by a lot more.

It's been very liberating to be free of the shackles of extra stuff and I can already see some benefits of living in less space. Also, all that extra floor space you fill with junk, actually costs rather a large amount of money.

Interesting how spending money on extra stuff you don't need actually ends up costing you even more money!

The Simple Life

Over the past few years which have included my downsizing moves, I have hankered for the simple life. Mostly I did nothing about it but this year my breakthrough came. Not only did I move into a one bedroom and start to de-clutter, I have of course, started this blog and becoming more financially aware with a view to becoming financially independent.

There are so many benefits to heading in this direction, most notably having to pay less rent/mortgage for my accommodation but also because there is less space to put extra (and unnecessary) things. Things I wouldn't be able to buy since there wouldn't actually be any place to put them. If it was something that was desperately needed, it would have to be space-exchanged for something no longer needed.

So think about where you live and whether you actually need all that space. After all, most of that area is space you probably don't even use on a day to day basis, yet you're paying for it in rent/mortgage and you're buying things to fill it up!

I shall be continuing my plan on annexing a lot of my stuff and hopefully when the time comes to move again, I shall be able to find a place of a reasonable size, for a reasonable price and it still be like a castle to me.

What are your thoughts on the size of your house? Do you need more or less? Would you be able to survive in a smaller place?

Labels: planning, living, consuming

Inserted: 2008-11-03 23:08 (3 years, 3 months ago)

Fatso, MovieShack and DVD Unlimited Merging

News in today (thanks Chris), Fatso, MovieShack and DVD Unlimited are merging. He's at Fatso and has already been notified of it but us guys who use MovieShack haven't been told anything yet.

Once I read about it all, I sent a message to the MovieShack guys asking a few questions. One thing I wanted to know was whether they were going to keep the price points the same since, in my eyes, there was now a lack of competition in the all you can eat DVD market in New Zealand.

A few hours later, I received a reply.

What does this mean for us?

Of course, they said that "it wasn't a monopoly since you can rent DVDs, buy them, watch TV or go to the movies". Absolutely, I agree. But ... there is now a complete lack of competition in the send to my home as many DVDs as I can consume in a month type companies. Before this announcement there were three companies that did this, now there is just one (and please let me know in the comments if there are any others in NZ I don't know about).

The good news is that they said "the price points will be lowering." By how much, I don't know but hopefully they'll stick to their word. I'm sure that whatever they lower the prices too, it won't be as low as the special offer they gave me earlier this year.

I was a member last year for the 3 DVDs for $40 thing. I decided to stop since that's a lot of money. Earlier this year they then sent me a "come back" offer of 3 DVDs for $24 which is an absolute bargain. I suspect the regular prices won't go as low as that though I also expect mine not to go up. If it does, I shall complain and if that doesn't work, I'll quit. Not to be difficult but it'd be hard to justify anything more than that per month. I couldn't justify it last year, I wouldn't be able to justify it this year either. $24 is about okay though and I know I'm getting my money's worth.

Will it be really any better?

Who's to know and it's up to the future to tell us as it happens. There are a few things to consider here though:

• Price - which would be better if they stick to what they told me today.
• Service - hopefully synergies between the companies can help
• Selection - the catalog will grow bigger I'm sure
• Website - luckily for me, they'll be using the MovieShack system (I didn't like Fatso that much and the DVD Unlimited site is basically unusable since there is flash everywhere)

So yes some things will improve but I now consider it a monopoly so I'll be watching with keen eyes over the next few months when it all comes together.

Why I use a DVD-at-home system

There's no doubt that the level of service from MovieShack has been fantastic both times I have been in it. I love the convenience of just popping the DVDs back in the envelopes. It also works out reasonably priced in comparison to some video stores. Granted, you can get 5 DVDs for $5 for a week from a shop but I'd never watch them all, have a smaller selection and would have to take them back before I knew what day it was. With postal DVDs, you can take your time as well as getting documentaries, TV series as well as films.

It's no wonder my TV hasn't been plugged in to the aerial since April.

Before I go, I should say thanks to James at MovieShack who answered my email earlier on today. It was very much appreciated to learn a little more about the whole thing. I hope it all goes well (I know how data migrations can be painful) but I also hope it does end up being a better deal for us consumers :-)

Edit: It would happen, just as I posted this, I got an email from MovieShack telling us about it. I guess this post is more about the merger than the announcement anyway.

Labels: consuming

Inserted: 2008-10-02 22:50 (3 years, 4 months ago)

10 Little Sacrifices which make a Big Difference

By just cutting out those little things here and there, you can make a big difference to your future savings or your past debt. Either way you'll be much better off. Also, by starting now you can help reduce both the time you'll need to pay off your mortgage and the time you have to wait to retire. Sounds good doesn't it and in all honesty, it almost sounds too good to be true.

ECRD - Or "Little Sacrifice" to You and Me

So what's an "ECRD?" I hear you say. Well, it stands for Expensive Coffee-Related Drink. What it means is those habits for which there are easy but cheap substitutes or which you can cut out entirely. You know what I mean, that takeaway coffee you get from the cafe mid-morning. That chocolate bar you buy on the way home from work. That magazine you really just don't need (and contains no redeemable information in it anyway). It turns out for each of these things, you are paying exorbitant amounts of money for something you can conjure up yourself for pennies.

As for the acronym, ECRD, I think it's a terrible phrase so instead I shall call these new habits "Little Sacrifices". Why? Because it fully describes what you're doing, rather than what they are. It also keeps them in perspective a bit more in your head; they are both a sacrifice but in reality they are only little.

My 10 Little Sacrifices

This is a copy of my list which I drew up a couple of weeks ago. It might be a good starting point for yours:

• Takeaway Coffees: at $4 or $5 a time, these babies can add up to something over $1,000 a year
• Fast/Takeaway Food: at $6-12 a pop the cumulative amount adds up real soon
• Magazines/Newspapers: which you can probably read on-line anyway
• Chocolate Treats: already expensive at $1.50-$2.00 a go, a snack each workday afternoon adds up to over $400 a year
• Breakfast on the Go: buying on the go eats into your paycheck

And possibly some more controversial ones:

• Going to the Cinema: adds up over time, especially with added snacks
• CDs/DVDs: think about renting rather than buying
• Books: these too can be gotten at the library
• Satellite/Cable TV: think about how many channels you actually watch and then how many you actually need
• The Car: I'm not (yet) saying do without but consider walking or riding for those little journeys

All For the Win

I'm sure you don't agree with my list above, after all it is quite specific to my circumstances but this is what I recently came up with to stop me spending all those extra dollars every day.

My typical day used to go something like this...

Get up late and grab breakfast on the way into work ($3). Takeaway coffee mid-morning ($4.50). Eat out lunch ($8-15). Chocolate in the afternoon ($1.60). Supermarket or take-out for evening meal ($5-$15). That's about $30 spent, every single day, excluding anything else. How does $7,500 a year sound?

And add in the odd purchase of a DVD, CD or book on the way home, watching a film on TV in the evening and maybe a beer or two at night (oh right, I didn't mention alcohol!) and it all adds up.

Zero Dollar Days

The best thing about all of these Little Sacrifices is that none of them are too big to say that you can't do them. Since I started my plan to Retire at 40 I have gone without (or substituted) a number of these things for other, cheaper options.

I always eat a healthy and filling breakfast at home. I have Milo or coffee in the office mid-morning. I've been walking home to have lunch (double benefit of exercise too), no afternoon snack and instead of paying lots for cable, I have joined an all you can eat DVD service to get films sent to my house. I've also been making healthier - and cheaper - evening meals.

This leads me on to my next plan, which is to have more Zero Dollar Days. So far, I have had three of them and the first time I had one I couldn't believe that I had gone through the entire day without spending any money whatsoever. It didn't feel real. Now that I've had three, I want more. It feels a lot more real now.

Your List

My challenge to you is to go and make your own list of Little Sacrifices and see how many you can stick to over the next two weeks. You'll probably realise as I have, how much you've already saved in just two weeks. It shall be my two week anniversary tomorrow and already I can see a healthier me and a healthier bank balance.

Let us know some of those "Little Sacrifices" you have also made in your life.

Labels: saving, consuming, spending

Inserted: 2008-09-23 20:26 (3 years, 4 months ago)