A Dollar Saved Here and There Adds Up To Big Money
August 3, 2007, 2:44 pm
How small changes here and there can add up to big financial savings.
For over 30 years we been providing advice on budgeting skills that, when followed, can save you a lot of money. There's only so much you can do to minimize the waste in your spending habits. And many of the strategies we teach, by themselves, can help you save a few dollars in the short term.
For example, we suggest you pay cash for purchases and keep your credit card debt under control. While this is a great financial strategy, all by itself, nobody gets rich simply by paying cash. Even with a $2,000 credit card balance at 15 percent interest, the monthly finance charge is only $25, which may not seem that high.
Nevertheless, we would estimate that combining the strategies we teach at Springboard could save the typical consumer between 10 and 20 percent on their total expenses, when used properly.
If you don't think a 20 percent savings on the money you spend is worth a little extra effort, ask yourself this question: How much harder would you be willing to work for a 20 percent raise at your job?
If you make $10 an hour at a full-time job, a 20-percent raise would increase your weekly take-home pay by approximately $60. From that perspective, it actually makes sense, doesn't it? It's just human nature that an extra $60 a week on your paycheck seems a lot better than the same $60 subtracted from your expenses, but it's reasonable to expect a $60 weekly savings by managing your money better.
So, how often do you buy lunch at a fast food restaurant? For every trip through the drive-thru, you can save up to two dollars by eating at home. Start packing your lunches and you can save $25 dollars a week. Is it worth the effort to you?
How many times a week do you withdraw money from an ATM? At a dollar or two per transaction in service charges, you could save four or five dollars a week just by driving an extra few minutes to use the ATM at your bank and making fewer withdrawals. Now is it worth the effort?
Do you clip coupons from the Sunday and Wednesday paper? If you do, you might be able to save up to five dollars a week. Do you keep your car tuned up and the tires fully inflated? That's another few bucks a week in gas costs. Do you turn the lights out when you leave a room? Do you wait until after 6 p.m. to make long-distance phone calls? Do you compare prices when shopping?
Are you starting to get the picture here?
If you think about it, these techniques really don't require as much discipline and effort as you may think. However, you do have to change the way you think about money. Once you make that step, the rest is easy.
